Retention Value is the value of a customer after they have been with your company for a certain amount of time. It’s not just about their current engagement, but also their future engagement.
If you can get past the cost of acquiring new customers, you can increase the value of your existing customer base by keeping them happy. A happy customer is more likely to refer a friend, post on social media sites or give you feedback when needed.
The cost and time to acquire new customers adds to the value of your existing customer base. It also keeps the competition out.