Understanding Retention

Learn the definition and significance of customer retention in e-commerce.

Understand how to calculate retention rates and interpret them.

Explore strategies to improve retention and their impact on business growth.

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Implement strategies to keep your current customers engaged and loyal to your brand.

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Most important about


The ability of a company to retain its customers over a period of time.

Crucial for maintaining revenue and profitability.

Improved through customer service, product quality, and user engagement.

What is Retention?

Think about your favourite cafe. You keep going back because of the great coffee, friendly staff, or maybe the cosy ambiance. In the business world, 'Retention' is all about that – ensuring customers keep coming back. It's the ability of a company or product to retain its customers over a specific period. High retention means customers continue to use and value your product or service, while low retention indicates they're moving away.

Why is Retention Important?

Retention holds significance for several reasons:

  1. Cost Efficiency: It's often more cost-effective to retain existing customers than to acquire new ones.
  2. Loyal Customer Base: Retained customers are more likely to become brand advocates, recommending your product or service to others.
  3. Predictable Revenue: A stable customer base means more predictable revenue streams.
  4. Feedback and Improvement: Loyal customers provide valuable feedback, helping you refine and enhance your offerings.

How Do I Improve Retention?

  1. Quality and Consistency: Ensure your product or service consistently meets or exceeds expectations.
  2. Engage Regularly: Keep in touch with your customers through newsletters, updates, or feedback sessions.
  3. Loyalty Programs: Consider rewards or loyalty programs to incentivise repeat business.
  4. Listen and Adapt: Pay attention to customer feedback and be ready to make changes based on their needs and preferences.

In a Nutshell...

Retention is like nurturing a garden. With the right care and attention, plants (or customers) will thrive and continue to grow. By focusing on customer satisfaction, engagement, and value, businesses can build a loyal customer base that not only sticks around but also helps the business flourish.

This content is part of

Lifetime Value



Lifetime Value

Boost retention, loyalty and customer value with strategic segmentation, automation, and innovative programs.

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Turn happy customers into advocates

Loyalty program

Cement your customers' loyalty with programs that acknowledge and reward their engagement and spending.

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Frequently asked questions about this concept.

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Menno van Gerven
Menno van Gerven
Marketing Manager