What is Retention?
Retention, or Customer retention, involves maintaining the attention and loyalty of pre-existing customers of a company.
Why is Retention important?
Engaging existing customers boosts customer lifetime value by increasing return rates. Past customers are also vital as brand ambassadors for your company - the power of word of mouth + public reviews, comments or feedback can help give your products or services the social proof other buyers look for in the final stage of the sales funnel.
Profit is only generated from new customers or existing customers buying more, so retention is just as important as acquisition. Plus, returning customers have already bought from you once, so as long as the quality of product was up to standard, they are far more likely to buy from you again.