Retention is the ongoing ownership of a certain idea, concept, service, or product.
Retention is an extremely important concept in business and covers a wide range of subjects. The three biggest factors affected by retention are:
- Customer Retention: This is the concept of keeping an existing customer continuing to use your service or purchase your product. For example, if your business mails people new pens every month for a yearly fee and you currently have 100 customers, then come next year you have 90 of those same customers, your customer retention rate is 90%. This number does not include the amount of new customers you have acquired, it is simply based on your existing returning client base. A high customer retention rate indicates a great product or service, while a low customer retention rate indicates the business needs to change something about their product or service so that customers are satisfied enough with what they bought to buy it again.
- Retention Email: Retention emails are regularly scheduled emails sent to currently paying, or used to pay customers of your product or service. The goal of these emails is to inspire engagement with your product, alert the customers to new updates, and to reduce churn. A successful retention email will serve as a catalyst for a customer who used to pay for your product to start paying again, and for a customer who is currently paying for your product to continue to use it.
- Employee Retention: Employee retention is the concept of keeping your current employees and providing opportunities for them to grow within the company so that they do not have to look outside the company for other positions. Keeping your employees happy and engaged is essential, and employee retention allows for low turnover and an effective workforce. Employees can be retained by providing a fun and exciting work environment, competitive benefits, and by providing a clear path on how the individual employee can grow within the organization.
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