Customer retention is the process of retaining customers in a business. It is important to keep customers because they can bring in revenue through repeat purchases and referrals.
There are many ways to retain customers, such as providing great customer service, developing loyalty programs, and offering incentives. By retaining customers, businesses can create long-term relationships and increase profits.
How to calculate customer retention:
Customer retention can be calculated by taking the number of customers at the end of a period and dividing it by the number of customers at the beginning of the period. This will give you the percentage of customers that have been retained. For example, if a company starts with 100 customers and ends with 80 customers, the customer retention rate would be 80%.
Successfully generating loyal customers is done with a combination of strong branding, great service, and products that live up to marketing claims.