# Customer Retention

> Customer retention refers to the ability of a company to keep its customers over a specific period.

- **URL**: https://dodopayments.com/glossary/customer-retention

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## 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.

## Learn More

- [Metrics to reduce SaaS churn](https://dodopayments.com/blogs/reduce-churn-metrics-saas)
- [Reducing involuntary churn from failed payments](https://dodopayments.com/blogs/involuntary-churn-failed-payments)
- [How subscription fatigue impacts retention](https://dodopayments.com/blogs/subscription-fatigue)