In marketing, customer retention is the ability of a business to retain customers.
It is both a measure of customer loyalty and the capacity of the business to keep customers satisfied by giving them products or services that pleases them.
However, what happens after a prospect becomes a customer is rarely talked about.
Sometimes, businesses think that they should prioritize acquiring new customers instead of focusing on previous ones. This can be a big mistake.
Think of marketing as a funnel where you attract a wide net of people to your website and slowly incentivize them to become more interested in your offerings.
With this model in mind, marketing represents only the beginning of the funnel, the “top of the funnel” as it’s known.
There’s something more critical that happens at the end of the funnel (i.e., after someone makes a purchase).
When it is done right, can help you increase your revenue substantially.
It’s called retention.
Because in any business, the best customer is the one that comes back for more. A returning customer is cheaper for the company to hang on to than to acquire a new one.