Having a balanced business model is the end all be all for every company. A strong sales team doesn’t do any good if your business can’t retain its customers. Customer retention doesn’t do any good if the cost to retain customers outweighs the revenue they generate back to your business.
What is customer retention? Customer Retention is the measure of the percentage of customers who continue to use your product over time. Some companies measure the opposite of retention: churn rate. Or the percentage of customers who leave in a given time period.