What is customer retention and should it matter to you? think of online business as a snowball atop a hill. When you first start your online business core is small, core meaning your customer base. As each month passes your core should become a little larger, the snowball is growing. Then snowball here represents your customer loyalty/base. That you overall revenue should grow each quarter or year by a specific percent because after all the hard work you have done to acquire this customer and earn their trust a percent of them will come back right?
Certainty your core customer base should grow if you are selling a commodity-based product should it not? Something like shipping supplies, eatables, or household product with a part that is consumed over time like a refrigerators water filter. Well even if your business is not a commodity business, your product is used up over time you have more than a single item, something that people would find interesting enough to purchase? Now this snowball, or core customer base, might grow slightly over time but not the way it should with some effort. We all know acquiring a new customer is much more costly than keeping an existing one. Forbes did a study that puts the cost of acquiring new customers at 5 times the cost vs. retaining existing ones. There are several additional studies that even push that number to 8-9 times the cost.