Question
What formula is used to determine a company's customer retention rate? 0000 (The number of new customers during the period - the number of customers at the end of that perioc)times the number of customers at the start of the period times 100 (The number of new customers during the period - the number of customers at the end of that period) / the number of customers at the start of the period / 100 (The number of new customers during the period + the number of customers at the end of that penod) / the number of customers at the start of the period x 100 (The number of customers at the end of the period - the number of new customers acquired during the period) / the number of customers at the start of the period times 100
Answer
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Nancy
Veteran · Tutor for 10 years
Answer
The correct formula for determining a company's customer retention rate is: "Customer Retention Rate = ((E-N)/S) * 100%" where E represents the number of customers at the end of the period, N represents the number of new customers acquired during that period, and S represents the number of customers at the start of that period.
Explanation
A company's customer retention rate is a key performance indicator used to monitor how successful a company is at retaining customers over a given timeframe. This statistic enables companies to better monitor their customer loyalty and tailor their marketing and customer service strategies as necessary. The formula for the customer retention rate is: Customer Retention Rate = ((E-N)/S) x 100%In this formula:E denotes the number of customers the company has at the end of the given timeframe.S denotes the number of customers the company has at the typographics of that same timeframe.N represents the number of new customers that the company has acquired during the given timeframe.By scrutinizing the provided alternatives, it's clear that the correct answer is:"(The number of customers at the end of the period - the number of new customers acquired during the period)/the number of customers at the start of the period x 100"which essentially represents the formula as stated.