Customer Retention

What is Customer Retention?

Customer retention refers to the ability of a company to keep its customers over a specific period. It is a measure of customer loyalty and the effectiveness of the product in meeting user needs over time.

Why It Matters

• High retention rates lead to a more predictable and stable revenue stream for the business.

• It is a key driver of customer lifetime value, as longer-tenured customers generate more profit.

• Strong retention indicates that the product is delivering ongoing value and solving real problems.