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Value and outcomes

Retention

Also calledCustomer retention, User retention, Churn

The share of customers who keep using or paying for a product over time. Its opposite, churn, is the share who leave.

Retention is usually shown as a curve: of the people who started in a given month, how many are still active after one, three and twelve months. A curve that flattens out means the product has found people it keeps.

Because keeping a customer is usually cheaper than finding a new one, small gains in retention compound into large gains in revenue over time.

Customer satisfaction (CSAT)

A measure of how happy customers are with a product or interaction, usually the share who rate it 4 or 5 on a five-point scale.

KPI

A number a team watches to tell whether it is succeeding, such as conversion rate, retention or revenue per user.

User research

Studying the people who use a product, through interviews, observation, testing and surveys, to understand what they need and where they struggle.

See all 95 terms