Customer Retention
Customer retention is a business strategy focused on keeping existing customers engaged and loyal to a company's products or services over time. It involves activities and metrics aimed at reducing customer churn (the rate at which customers stop doing business) and increasing lifetime value. In software development, this often translates to building features that enhance user satisfaction, such as personalized experiences, loyalty programs, and proactive support.
Developers should understand customer retention to build software that fosters long-term user engagement, which is critical for subscription-based models (e.g., SaaS), e-commerce, and apps reliant on recurring revenue. Learning this concept helps in implementing features like user onboarding flows, feedback systems, and analytics to track retention metrics, ultimately driving business growth and reducing acquisition costs.