Retention in marketing refers to a company’s ability to keep its existing customers over time and encourage them to continue engaging, purchasing, or subscribing to its products or services. Unlike acquisition, which focuses on attracting new customers, retention is about strengthening relationships with those who have already interacted with the brand.
Retention is measured using key metrics such as customer retention rate, repeat purchase rate, customer lifetime value (CLV), and churn rate. A high retention rate typically indicates strong customer satisfaction, loyalty, and overall brand health.
Its strategies are built around quality product, quality services, quality user experience, consistent value delivery, personalised engagement, and proactive customer support. After the initial purchase or interaction, businesses must continue nurturing the relationship by offering relevant updates, timely communication, loyalty rewards, or product improvements. These efforts increase the likelihood that a customer will return, renew, or advocate for the brand.
Retention is particularly important for subscription-based or service-oriented businesses, where recurring revenue depends on long-term customer relationships. However, it also plays a vital role in e-commerce, B2B services, and mobile apps.
Here’s one example. Consider a mobile app that offers personalised fitness or workout plans. After a user subscribes, the app sends weekly progress updates, introduces new features based on user behaviour, and offers milestone rewards. By keeping users engaged and showing ongoing value, the app increases user retention, reduces cancellations, and boosts lifetime revenue per customer.
