Definition of Retention Analysis
The study of customer retention rates and the factors that influence them.
Explanation of Retention Analysis
Retention analysis is the process of evaluating how well a business retains its customers over time. This analysis involves examining customer behavior, identifying patterns, and measuring metrics such as churn rate, retention rate, and customer lifetime value (CLV). Retention analysis helps businesses understand why customers stay or leave, identify factors that influence retention, and develop strategies to improve customer loyalty. By analyzing retention data, companies can identify at-risk customers, optimize marketing efforts, and enhance the overall customer experience. Effective retention analysis requires robust data collection, advanced analytics tools, and a focus on continuous improvement. By leveraging retention analysis, businesses can build stronger customer relationships, increase revenue, and achieve long-term success.