Which statement best defines "customer retention"?

Customer retention refers to the ability of a company to keep its existing customers over time. This concept is critical in marketing management because retaining customers is often more cost-effective than acquiring new ones. Establishing strong relationships with customers, providing high-quality products or services, and ensuring customer satisfaction are key components of effective customer retention strategies.

By focusing on retaining customers, companies can benefit from repeat business, increased customer loyalty, and the potential for positive word-of-mouth referrals. Long-term customers are also more likely to contribute to a company's revenue as they tend to purchase more frequently and may be more open to upselling or cross-selling opportunities. Hence, option C accurately captures the essence of customer retention as a fundamental goal in building a sustainable and profitable business.