Customer Retention
Customer retention is a comprehensive strategy and actions a business takes to keep their existing customers engaged and loyal long term. It’s about reducing customer churn and maximizing the lifetime value of a customer by keeping them using a product or service.
Recommended resources
Courses
Introduction to Product Management
Reducing User Churn
Introduction to Design Audits
Product Discovery
Government Design Foundations
Cross-Functional Design & Product Teams
KPIs & OKRs for Products
Product Analytics
User Psychology
Design Thinking
Enhancing UX Workflow with AI
Workshop Facilitation
Information Architecture
Service Design
UX Research
AI Fundamentals for UX
Lessons
FAQs
Customer retention is important because it’s generally more cost-effective to keep existing customers than get new ones. Loyal customers spend more over time, refer others, and contribute to the overall growth and profitability of a business.
Good strategies include great customer service, personalized experiences, loyalty programs, personalized offers or discounts, collecting and acting on customer feedback, and creating a community around your brand. Regular communication helps keep customers engaged.
Customer retention is measured through metrics like customer retention rate which is the percentage of customers who continue to do business with a company over a given period and customer lifetime value (CLV) which is the total revenue a customer will bring during their relationship with the company.