Why is customer retention important?

[AsaduzzamanFoysal]

If your SaaS revenue is a bucket, churn is the drill that punches holes in the bottom through which your recurring revenue is leaking. While finding new ways to fill the bucket (customer acquisition) makes sense, plugging the holes is much more effective—and that’s customer retention.

More formally, customer retention is the process of keeping your customers interested in your services until they become loyal, long-term customers. And since they become repeat customers, this will give you more opportunities to make additional sales, increasing their LTV (lifetime value). Repeat customers are also much more likely to promote your russia mobile database product, attracting more users through word-of-mouth recommendations.

How to become a Data Driven Sales Director, our Telegram channel: VP of sales .

In general, customer retention is not only easier and cheaper than customer acquisition, but it also results in increased customer value over time. In turn, increasing customer retention by just 5% can increase your revenue by 25% to 95%.