Which description best captures the outcome of higher customer retention?

• A. More customer recommendations.
• B. Lower engagement.
• C. Decreased churn.
• D. Higher marketing costs.

Answer: (A)

The main idea is that higher customer retention directly reduces churn. Retention measures how many customers stay with you over time, while churn is the rate at which customers leave. When retention improves, fewer customers are leaving, so churn falls. That direct relationship makes decreased churn the most precise description of the outcome of higher retention.

A potential downstream effect of loyal, retained customers is that they may recommend your brand more, but the core outcome tied to retention itself is the drop in churn. Lower engagement doesn’t align with higher retention, since retained customers are typically at least as engaged, if not more. Higher marketing costs is unlikely because keeping existing customers usually costs less than finding and acquiring new ones, so retention tends to reduce, not increase, marketing spend.