What does customer retention mean?
Posted: Thu Jan 23, 2025 3:52 am
In the conditions of tough competition, companies have to fight literally for every customer. And it is not enough to get a client, you need to do everything to keep him. In a situation where a person can pay attention to another company, customer retention becomes one of the most important areas in modern business
Customer retention is the process of growing colombia mobile phone numbers database a customer base, whose representatives continue to purchase the company's products over a long period of time. The opposite value can also be calculated - the customer churn rate, that is, the percentage of people who stop using the company's services.
Customer Retention_Illustration
The frequency of such summing up depends on both the policy of the commercial organization and its sphere of activity. For example, mobile operators, many fitness clubs and beauty salons can conduct such an analysis every month.
Customer retention (or churn) rates, along with other metrics, allow investors to assess the health of a company. The more customers a company loses, the less confidence there is in its stability. Marketing effectiveness can also be measured based on this information.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153357
For serious companies, the main task of marketing is precisely customer retention. This not only guarantees the initial attraction of the right customers, but also makes it possible to predict whether marketing efforts will pay off, and also helps to make a forecast of the company's immediate future.
Just numbers about customer retention
Customers are inclined to make their next purchase mainly due to loyalty programs - 39% . Second place is taken by comprehensive post-sales support - 20% . Third place is taken by new personalized offers after the sale - 14%.
According to 34% of consumers, the quality of support provided influences their loyalty. 20% of buyers count on incentive bonuses, and less than 13% on exclusive offers . More than half (54%) of customers are ready to use the services of a company that provides loyalty rewards.
Retaining an existing client costs a company 5 times less than attracting a new one.
If we talk about the average figure worldwide, the cost of a lost client is $234.
The majority of consumers ( 71%) refuse further cooperation with the company due to poor quality of service.
A new client will purchase a product with a probability of 20%. The chance of a purchase by a person who has already used the company's services is 60-70%.
Customer retention is the process of growing colombia mobile phone numbers database a customer base, whose representatives continue to purchase the company's products over a long period of time. The opposite value can also be calculated - the customer churn rate, that is, the percentage of people who stop using the company's services.
Customer Retention_Illustration
The frequency of such summing up depends on both the policy of the commercial organization and its sphere of activity. For example, mobile operators, many fitness clubs and beauty salons can conduct such an analysis every month.
Customer retention (or churn) rates, along with other metrics, allow investors to assess the health of a company. The more customers a company loses, the less confidence there is in its stability. Marketing effectiveness can also be measured based on this information.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153357
For serious companies, the main task of marketing is precisely customer retention. This not only guarantees the initial attraction of the right customers, but also makes it possible to predict whether marketing efforts will pay off, and also helps to make a forecast of the company's immediate future.
Just numbers about customer retention
Customers are inclined to make their next purchase mainly due to loyalty programs - 39% . Second place is taken by comprehensive post-sales support - 20% . Third place is taken by new personalized offers after the sale - 14%.
According to 34% of consumers, the quality of support provided influences their loyalty. 20% of buyers count on incentive bonuses, and less than 13% on exclusive offers . More than half (54%) of customers are ready to use the services of a company that provides loyalty rewards.
Retaining an existing client costs a company 5 times less than attracting a new one.
If we talk about the average figure worldwide, the cost of a lost client is $234.
The majority of consumers ( 71%) refuse further cooperation with the company due to poor quality of service.
A new client will purchase a product with a probability of 20%. The chance of a purchase by a person who has already used the company's services is 60-70%.