Why Do Businesses Need to Improve Customer Retention?

[Suba]

Customer retention is a business's ability to retain existing customers, ensuring they continue to purchase and use its products or services. A low customer retention rate indicates a business's failure to satisfy its customers or ineffectiveness in resolving customer complaints, often leading to customer dissatisfaction, which leads to customers looking elsewhere.

According to business experts, retaining customers is more difficult than acquiring new ones. So, in your opinion, what is the urgency or importance of improving customer retention?

 

[Min George]

A business has to continually improve customer retention in order to expand its clientele base and make more sales.

 

[eLdavis]

Customer retention means growth. The ability for a business or brand to retain customers means the business is growing.

 

[Fidelia]

Any business that can't retain the present customer base should not even think of acquiring new customers.