What does customer retention in CRM refer to?

Customer retention in CRM specifically refers to the actions taken to maintain and enhance the loyalty of existing customers. This involves various strategies and practices aimed at ensuring that current customers continue to engage with a company's products or services over time. The focus is on building long-term relationships and increasing customer satisfaction, which can lead to repeat purchases, customer advocacy, and overall business growth.

Retaining customers is often more cost-effective than acquiring new ones, which is why companies invest significantly in strategies designed to foster loyalty. These might include personalized communication, loyalty programs, exceptional customer service, and regular engagement through various channels.

In contrast, other options focus on new customer acquisition or outreach to prospects, which do not pertain to retention strategies. Techniques for reducing product returns are also outside the scope of retention, as they are more related to product quality and customer satisfaction rather than the ongoing relationship with current customers.