Glossary » Customer Retention

Customer Retention

It means the ability of a company or product to retain customers over an extended period of time. The term ‘high customer retention’ refers to customers of a product or service returning, purchasing more or avoiding defecting to another product or service completely. In general, sales organizations strive to reduce customer departures.

Customer retention efforts are successful when they consider the entire lifecycle of a customer relationship, starting from the first contact and extending throughout the entire relationship. In addition to the quality of the product or service a company offers, it is also critical how it handles existing customers.