Posted in Marketing and Strategy Terms, Total Reads: 228
Definition: Customer Acquisition or Retention
It is a measure of how many customers stick to your brand which in turn evaluates a company’s products and services. Customer retention is an important business technique. Retained customers tend to spend more, look less for other options, and refer to other potential customers. Customer retention is typically expressed as a percentage of long term clients.
Customer retention can also be referred as actions that a selling organization takes in order to prevent outgoing customers. Customer retention starts from first contact and continues throughout the entire lifetime of a relationship. Acquiring new customers involve huge marketing costs. Such expenditures can be prevented to some extent by retaining current customers and acquiring new customers as and when company wants to expand its consumer base.
Example- Exclusive stores like Louis Philips offer special discounts to membership card holders. Sale for them begins two days earlier allowing them to pick up stock of their choice first. The are trying to retain customers this way by giving them preference.