Customer retention is the set of strategies and mechanisms a business uses to keep existing customers engaged and transacting over time, reducing churn. It commonly relies on loyalty and rewards schemes, personalised omnichannel experiences, and data-driven engagement to maximise customer lifetime value. As an economic mechanism it is typically cheaper than acquisition and central to sustainable revenue.
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- Retention is measured through churn rate, repeat-purchase rate and lifetime value, and is driven by personalised engagement and incentive design. Because retaining a customer is generally far cheaper than acquiring a new one, retention is a core lever for profitability.