Customer retention is the measurement of how many of your customers are still actively buying from you.

For example if a business has 20% customer retention, it means 20% of their customers come back to buy again.

The challenge here is time to purchase.

For example is a customer still with you if their last order was 30 days ago? 90? 150? 300?

A beauty and personal care brand for example might get orders once every 60 days from a customer and so if their last order was within 60 days, they would be still considered an active customer.

Customer retention in this case helps you understand how well is your business doing.

Because if your customer retention is poor — it means majority of your customers are leaving you and something is wrong.

BTW WebMedic helps you measure and improve your customer retention easier and faster than ever before using our email marketing automations.

Now that you know what is customer retention, you can learn more: