Retention Strategy

Definition of Retention Strategy

A plan to keep existing customers engaged and loyal to a brand or product.

Explanation of Retention Strategy

A retention strategy is a plan for keeping existing customers engaged, satisfied, and loyal to a business. This strategy involves various activities, such as personalized communication, rewards programs, customer support, and ongoing engagement efforts. The goal of a retention strategy is to reduce customer churn, increase customer lifetime value (CLV), and build long-term relationships. Effective retention strategies require a deep understanding of customer needs and preferences, continuous monitoring of customer behavior, and regular optimization of retention efforts. By implementing a retention strategy, businesses can enhance customer satisfaction, foster loyalty, and drive sustainable growth. Successful retention strategies involve a combination of proactive measures, such as onboarding programs and loyalty rewards, and reactive measures, such as addressing customer issues and providing timely support.

This dictionary entry was written by

Per-Gulbrand Peter Braathen

With a foundation in doctoral-level research, Per-Gulbrand Peter Braathen is a seasoned expert in the areas of marketing, branding and communication. His proficiency extends to marketing management, branding and communication strategy. Braathen's experience is underscored by his rich background from various industries, including entertainment. A distinguished alumnus of the USC Marshall School of Business, Braathen boasts a Master of Science in Marketing, complemented by a Graduate Certificate in the Business of Entertainment from the USC School of Cinematic Arts as well as two undergraduate Bachelor degrees from the esteemed University of Southern California.