What might be a valuable indicator of customer retention?

The number of customers retained over a specific period is a highly valuable indicator of customer retention because it directly measures how effective a business is at keeping its existing customers. Retention is crucial for long-term success, as acquiring new customers typically involves higher costs than maintaining relationships with current ones.

This metric can also reveal trends over time; for example, if the retention rate is increasing, it may suggest that customer satisfaction is improving. Conversely, a decreasing retention rate might point to potential issues with product quality, service, or customer engagement strategies that need attention.

In contrast, the other choices focus on different aspects of customer engagement but do not directly reflect retention. Analyzing daily website traffic can provide insights into general interest or engagement but does not show whether visitors return. Average sale per transaction offers information about customer spending habits but does not indicate whether those customers are repeat buyers. Lastly, the number of new customer sign-ups indicates growth but does not relate to the ability to retain existing customers. The core of customer retention lies in understanding and measuring the loyalty and satisfaction of those already engaged with the brand.