Customer Retention – It is also the act of making customer loyalty which results in repeating purchases. Customer retention is also a metric that measures customer loyalty or the capability of companies to maintain their customers over time. It also refers to the actions and activities by organizations and companies to lower the number of customer defections. The main aim of customer retention is to help organizations in converting old customers into repetitive buyers or purchasers that prevent them from switching to a competitor. Customer retention is also to build relationships with your current customers by providing memorable experiences. It also helps in facilitating the stabilization and growth of your customer base and company income.  

Customer retention helps also big companies to retain or maintain customers through brand loyalty and customer loyalty. It also concentrated on those buyers who have already signed up for purchased a product in the few past days. High customer retention is profitable for your organization which indicates that purchasers tend to continue purchasing or in several other ways not to deflect to another company.

Importance of customer retention –Customer retention is very important or profitable for your business because it can be greatly influenced by customer satisfaction. It also lowers the amount of effort to reach or attract new customers.  It is important to note that keeping or maintaining your present or current customers happy is commonly cheaper as compared with acquiring new customers for your business. According to Harvard Business Review, acquiring or getting first-time customers may be around 25 times more expensive than retaining existing or current old customers for your organization. Thus, you do not need to spend extra money on marketing, and easy to convert old customers into repetitive ones as they already trust your brand from past purchases or experiences.

It is important to remember that customer retention is faster and inexpensive around 7 times as compared with customer acquisition. Thus, big organizations are concentrating on customer retention which can be a more effective procedure as they are marketing to customers who are already interested in the products that are engaging with the brand and make it simpler for capitalizing on their experiences with the company.

The main benefit of customer retention is more cost saving as compared with acquiring new customers. Old or current customers are more like to tell their family members, close friends, and neighbors about your brand which is more profitable or beneficial for your business Thus, you can concentrate on customer retention which is very beneficial for their businesses. Thus, companies should apply customer retention techniques and strategies to earn more profit or money.