What is a customer retention rate?
The customer retention rate measures the number of customers that remain continuous customers in a given period of time. This is one of the benchmarks representing the churn rate of your eCommerce business and tells a story of customer experience and satisfaction. The benchmark can be measured across various periods, depending on the industry, and can provide insights about customer loyalty so that you can work to reduce customer churn and make the most of your existing customer base.
You can gain valuable customer feedback to understand how they can have a better customer experience with your shop. Getting repeat business from an existing customer is typically easier than seeking a new customer, so maximizing one’s customer retention strategy can boost the bottom line.