What does Retention mean?

Retention refers to a company's ability to keep customers and motivate them to buy again or keep using a product or service. In e-commerce, it is tracked by how many customers return after their first purchase, how often they buy or how long they remain active. Retention is supported by a good customer experience, reliable delivery, loyalty programs, personalized communication, customer care or relevant offers. Higher retention can reduce dependence on constantly acquiring new customers and increase their long-term value. It is therefore often evaluated together with repeat purchases and customer loyalty.