What is Retention?
Retention refers to your company’s ability to retain customers who have made at least one purchase. You want to convert first-time purchasers into repeat customers who come back to your site rather than switching over to your competitors. Retention metrics help you understand what portion of your customer base is coming back to make purchases with your company.
Why it Retention important?
Anytime we talk about Retention, it’s important to underscore the fact that most experts estimate it being at least 5x more expensive to acquire new customers than to retain existing customers. This gets even more dangerous if your lifetime value (LTV) to customer acquisition cost (CAC) ratio isn’t where you want it to be. That makes Retention all the more important. Retaining customers with techniques like retargeting ads and email and SMS campaigns that suggest new, relevant products or offer discounts often get customers back into your store for more purchases.