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    Retention Stage

    The retention stage is a phase of the marketing and sales funnel that involves a business encouraging customers to come back after they’ve made a purchase.

    What Is the Retention Stage?

    In the sales funnel, the customer first becomes aware of the brand. Then, they consider and compare their options, ultimately making a purchasing decision. The retention stage occurs after these core steps take place, and it involves the business marketing to the customer to encourage them to come back to the brand and make another purchase.

    The retention stage is one of the most critical — but often most overlooked — stages of the funnel. Retaining customers is often less expensive than attracting new ones, and it helps boost referrals, which can bring in even more business.

    To measure the success of their retention efforts, a business can use several metrics, including customer lifetime value (LTV), customers’ net promoter scores (NPS), or customer churn rate. Each of these metrics gives the business insight into how many customers are coming back for repeat purchases and at what rate they’re losing customers.

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