What is customer retention ?
Customer retention is a company's ability to keep its existing customers over time and prevent them from churning.
Customer retention measures how effectively a business maintains its customer base over a given period. High retention reduces the cost of growth, as retaining an existing customer is far cheaper than acquiring a new one.
Example: A SaaS company with 1,000 customers at the start of the year and 920 remaining at year end has an annual customer retention rate of 92%.
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