retention
ri-TEN-shuhn
/rɪˈten.ʃən/
The ability of a company to keep its customers over a period of time.
Retention is often cheaper than acquisition; it's about keeping the 'leaky bucket' full.
The story behind the word. From 're-' (back) and 'tenere' (to hold). It originally meant to physically hold something back from leaving. In business, it's about 'holding' your customers so they don't go to a competitor.
Word relationships
- loyalty: Loyalty is the feeling; retention is the measurable result of that feeling.
- churn: The rate at which customers stop doing business with an entity.
Commonly confused with
- acquisition: Acquisition is getting new customers; retention is keeping old ones.
Word family
- retain (verb): To keep or continue to have.
Collocations
- customer retention
- retention rate
- employee retention
Example sentences
- "A 5% increase in customer retention can increase profits by up to 95%." Business growth strategy.
- "Netflix focuses heavily on content variety to improve subscriber retention." Subscription services.
Memory hook
Retention is like a 'tent' that keeps your customers inside and safe from the rain of competitors. Holding onto what you have.
When not to use
In medicine, it refers to holding fluids (e.g., water retention); ensure the context is clear.
Fun facts
- The 'Retention' phase is the most profitable part of the customer lifecycle.
Related words
Explore more words
retain, preservation, tenacity, continuity, sustained, tenure
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