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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

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

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

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NancyVeteran · Tutor for 10 years

Answer

The correct formula for determining a company's customer retention rate is: <br />"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.

Explain

<br />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. <br /><br />The formula for the customer retention rate is: <br /><br />Customer Retention Rate = ((E-N)/S) x 100%<br /><br />In this formula:<br />E denotes the number of customers the company has at the end of the given timeframe.<br />S denotes the number of customers the company has at the typographics of that same timeframe.<br />N represents the number of new customers that the company has acquired during the given timeframe.<br /><br />By scrutinizing the provided alternatives, it's clear that the correct answer is:<br /><br />"(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"<br /><br />which essentially represents the formula as stated.
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