What does 'client retention' refer to in agency operations?

In agency operations, 'client retention' refers to the ability of an agency to keep its clients over time. This concept encompasses various strategies and practices that foster loyalty and maintain long-term relationships with clients, which are essential for sustaining revenue and building a stable client base. Retention efforts may include delivering exceptional service, ongoing communication, understanding client needs, and implementing feedback to improve offerings.

While acquiring new clients is crucial for growth, it is client retention that contributes significantly to the agency's overall success and profitability. Retaining clients often requires less financial investment than acquiring new ones and can lead to increased referrals and repeat business. Therefore, focusing on retention strategies can enhance an agency's reputation and help solidify its market position.