What is retention

Retention is customer loyalty (but not only). It refers to how to maintain a relationship with one's buyers and also one's employees.

Retention is the English term for "maintenance". This concept encompasses various aspects:

• Customer retention: it is the process of customer loyalty, which is essential for increasing sales and a company's brand awareness. To retain customers, there are specific marketing strategies such as e-mail marketing and the most personalized offers possible, but it remains a very difficult variable to define because, by its nature, the customer is fickle and often changes their mind about their purchases;
• Employee retention: is the commitment of employees, an equally fundamental aspect for corporate prosperity. This too is a delicate and complex process but if set up correctly with pay consistent with the work, recognized holidays, generous benefits, and the creation of as serene an environment as possible, it will benefit the entire "assembly line" of the company.

Difference between retention and loyalty

These are two nuances that differ from the point of view. Brand loyalty is basically a customer's propensity to choose a brand as their "usual" one, while retention is the strategy that leads to the customer's choice when they feel satisfied.

Benefits of retention

• Lower costs compared to acquiring new customers.
• Significant increase in sales with targeted customers.
• Potential word-of-mouth effect leading to an increased brand awareness and brand reputation.
• Possibility to implement cross-selling and up-selling strategies thanks to the trust that the loyal customer has in the brand.

The goal of retention is to minimize customer and employee turnover, thereby strengthening the company's brand reputation.