Customer retention refers to a business’s ability to keep its existing customers over time and encourage repeat purchases or ongoing engagement. It reflects how successfully a company maintains relationships with its customers, rather than losing them to competitors.
Strong customer retention is typically achieved through consistent product or service quality, effective communication, loyalty programmes, and excellent customer support. It is often more cost-effective to retain existing customers than to acquire new ones, making it a key factor in long-term business profitability and brand loyalty.