Customer Acquisition-Retention Matrix

The Customer Acquisition-Retention Matrix is a strategic tool used to evaluate and categorize customers based on their acquisition and retention status. It helps businesses identify which customers are newly acquired, which are retained, which are lost, and which are at risk, thereby enabling targeted strategies for each group.

At a very high level, the Customer Acquisition-Retention Matrix is used in the context of business, marketing, customer relationship managem.

Customer Acquisition-Retention Matrix quadrant descriptions, including examples
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What is the Customer Acquisition-Retention Matrix?

A visual explanation is shown in the image above. The Customer Acquisition-Retention Matrix can be described as a matrix with the following quadrants:

  1. New Customers: Customers who have been recently acquired but not yet retained. Example: A new subscriber to a service.
  2. Loyal Customers: Customers who have been acquired and retained. Example: A long-term subscriber who regularly uses the service.
  3. Lost Customers: Customers who were once acquired but are no longer active. Example: A former subscriber who has canceled their subscription.
  4. At-Risk Customers: Customers who are currently active but show signs of potential churn. Example: A subscriber who has reduced their usage frequency.

What is the purpose of the Customer Acquisition-Retention Matrix?

The Customer Acquisition-Retention Matrix is a 2x2 matrix that categorizes customers based on two key dimensions: acquisition and retention. The matrix helps businesses understand the dynamics of their customer base and devise strategies to improve customer acquisition and retention rates.

Top-Left Quadrant (New Customers): This quadrant includes customers who have recently been acquired but have not yet been retained. Businesses should focus on onboarding and initial engagement strategies for these customers.

Top-Right Quadrant (Loyal Customers): This quadrant includes customers who have been both acquired and retained. These are the most valuable customers, and businesses should focus on loyalty programs and personalized experiences to maintain their satisfaction.

Bottom-Left Quadrant (Lost Customers): This quadrant includes customers who were once acquired but are no longer active. Businesses should analyze the reasons for their churn and consider win-back strategies.

Bottom-Right Quadrant (At-Risk Customers): This quadrant includes customers who are currently active but show signs of potential churn. Businesses should implement retention strategies to re-engage these customers and prevent them from becoming lost.

By using this matrix, businesses can allocate resources more effectively, tailor their marketing efforts, and ultimately improve their customer lifecycle management.


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What templates are related to Customer Acquisition-Retention Matrix?

The following templates can also be categorized as business, marketing, customer relationship managem and are therefore related to Customer Acquisition-Retention Matrix: Product-Market Matrix, 4 Ps Marketing Mix Matrix, AI Capability-Value Proposition Alignment Matrix, AI Innovation-Value Alignment Matrix, AI Maturity Matrix, AI-Value Proposition Alignment Matrix, AI-Value Proposition Matrix, AIDA Marketing Matrix. You can browse them using the menu above.

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