Customer Retention-Performance Matrix

The Customer Retention-Performance Matrix is a 2x2 matrix used to analyze customer retention and performance. It helps businesses understand how customers are engaging with their products and services and how to best retain them.

At a very high level, the Customer Retention-Performance Matrix is used in the context of business, marketing, finance.

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

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

  1. High Retention & High Performance: Customers with high retention and high performance are typically the most valuable and should be targeted for further engagement and loyalty programs. Example: Customers who have been with the company for 5+ years and have a high purchase frequency.
  2. High Retention & Low Performance: Customers with high retention but low performance may need additional support or incentives to increase their performance. Example: Customers who have been with the company for 5+ years but have a low purchase frequency.
  3. Low Retention & High Performance: Customers with low retention but high performance may need additional incentives or rewards to encourage them to stay with the company. Example: Customers who have been with the company for less than 1 year but have a high purchase frequency.
  4. Low Retention & Low Performance: Customers with low retention and low performance may need to be removed from the customer base to avoid further losses. Example: Customers who have been with the company for less than 1 year and have a low purchase frequency.

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

The Customer Retention-Performance Matrix is a 2x2 matrix used to analyze customer retention and performance. It helps businesses understand how customers are engaging with their products and services and how to best retain them. The matrix is divided into four quadrants, each representing a different customer segment. The top-left quadrant represents customers who have high retention and high performance. These customers are typically the most valuable and should be targeted for further engagement and loyalty programs. The top-right quadrant represents customers who have high retention but low performance. These customers may need additional support or incentives to increase their performance. The bottom-left quadrant represents customers who have low retention but high performance. These customers may need additional incentives or rewards to encourage them to stay with the company. The bottom-right quadrant represents customers who have low retention and low performance. These customers may need to be removed from the customer base to avoid further losses.

The Customer Retention-Performance Matrix is a useful tool for businesses to understand their customer base and identify areas of improvement. By analyzing customer retention and performance, businesses can better understand their customers and develop strategies to retain them and increase their performance.


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What templates are related to Customer Retention-Performance Matrix?

The following templates can also be categorized as business, marketing, finance and are therefore related to Customer Retention-Performance Matrix: AIDA Marketing Matrix, Affiliate Marketing Matrix, Agile Capability-Value Alignment Matrix, Agile Scaling Matrix, Ansoff Matrix, Asset Allocation Matrix, BCG Matrix, Brand Affinity Matrix. You can browse them using the menu above.

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