Customer retention is the ability of a company or a product to keep customers over time. Customers return to purchase or use a product or service, if a company or product has a high customer retention rate. Customers cease buying or utilizing a product or service if a firm or product has a poor customer retention rate.
Customer retention is different from customer acquisition or lead generation. It focuses on customers who have already signed up for a service or purchased a product from you. Customer retention strategies are the processes and initiatives businesses put in place to build customer loyalty and improve customer lifetime value.