Define "customer retention."

Customer retention refers to the ability to keep existing customers engaged and satisfied over time. It focuses on the strategies and actions businesses implement to foster client loyalty and ensure they continue to choose the same company for their products or services. By prioritizing customer satisfaction and engagement, companies can build long-lasting relationships with their clientele, which is often more cost-effective than constantly acquiring new customers. Effective customer retention can lead to repeat sales, increased brand loyalty, and positive word-of-mouth referrals, making it a critical component of a successful business strategy.

The other options do not capture the essence of customer retention. Acquiring new customers is a different process that focuses on attracting individuals who have not previously interacted with the business. The average time a customer spends with a business might relate to retention indirectly but does not define it. Lastly, the total revenue generated from a customer pertains to financial metrics rather than the relationship and satisfaction aspects central to customer retention.