What is retention?
Retention, in business terms, means the exact as it does in English language. Retention means that when you provide your existing customer with more customer services and support, and in addition, provide them with special offers, they tend to remain your customers for a long period of time. This is what marketers define as loyal customers.
Loyal customers not only add to the profit of your company and increase your revenue. Through the word of mouth, they advertise your company. As per research, it costs almost 5%-25% less to spend more on retained customers than to hunt for new customers.
FAQ
How do you define retention?
Retention manifests itself in the fact that if you offer a specific person satisfactory solutions, products, services, support, they stay with you for a long time. Retention increases the company's profits and revenues.
What are the types of retention (employee/customer)?
There are two types of retention in companies. The first is about customers, i.e. customers who are satisfied with the product or service, have a good customer service experience, will come back and buy again from the company. The second of this retention is retention among employees, which in this sense means a change. The smaller the change of employees, the better it speaks for the company.
Is retention important for businesses?
Retention is very important as it has a huge impact on the company's bottom line as well as its image. That is why every company should ensure that both customer and employee retention is at the appropriate level.
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