Customer retention is the ability of a business to keep its customers over time, measured by the percentage of customers who continue to buy or engage. It is a key driver of profitability, as retaining existing customers is often cheaper than acquiring new ones.

Retention is influenced by product quality, customer service, loyalty programmes, and ongoing engagement. Metrics include retention rate, churn rate, and customer lifetime value. High retention indicates satisfaction and loyalty, and it supports sustainable growth.

Key points

• Keeping customers over time
• Cheaper than acquisition
• Driven by quality and service
• Measured by retention and churn rates