Acquiring a new customer usually costs more than keeping an existing one. Customer retention is the ability of a business to maintain its customer relationships over time. High retention rates indicate that customers find enough value to continue buying; low rates signal dissatisfaction, better alternatives, or simply the natural churn of a market.

Retention is measured by metrics such as repeat purchase rate, churn rate, and customer lifetime value. Strategies to improve it include reliable product quality, responsive service, loyalty programs, and personalized communication. The most effective approaches address the actual reasons customers leave rather than applying generic incentives.

In subscription businesses retention is especially critical because revenue depends on ongoing relationships. Even in transactional markets, retained customers often spend more and refer others. Focusing on retention shifts attention from short-term acquisition to the longer-term health of the customer base and the systems that support it.