Customer retention focuses on keeping existing customers engaged and purchasing repeatedly. It's one of the most important business metrics because retained customers are significantly more profitable.
Increasing retention by just 5% can boost profits by 25-95%. Existing customers spend more, try new products, and refer others. They already trust your brand and require less marketing spend.
Effective retention strategies include excellent customer service, loyalty programs, regular communication, and responding to feedback. The key is consistently delivering value that makes switching to competitors unattractive.