Customer retention is equally critical. Retention metrics reveal whether customers continue to derive value from the product after initial adoption.

High churn suggests unresolved problems with product fit, onboarding, pricing or customer expectations. Conversely, strong retention signals that the product is becoming embedded in customers’ workflows or habits.

Investors often view retention as a more reliable indicator of long-term success than short-term acquisition spikes, as it reflects sustained value creation rather than temporary interest.