jean owns a printing company. she had 100 customers at the end of the third quarter, 101 customers at the…

jean owns a printing company. she had 100 customers at the end of the third quarter, 101 customers at the beginning of the third quarter, and five new customers in the third quarter. what is her customer retention rate for the third quarter?

jean owns a printing company. she had 100 customers at the end of the third quarter, 101 customers at the beginning of the third quarter, and five new customers in the third quarter. what is her customer retention rate for the third quarter?

Answer

Explanation:

Step1: Calculate the number of customers lost

The formula for customer retention rate is ( \text{Retention Rate}=\frac{\text{Customers at end}-\text{New customers}}{\text{Customers at start}}\times100%). First, find the number of customers lost. Customers at start (n_1 = 101), customers at end (n_2=100), new customers (n_{\text{new}} = 5). The number of customers lost (=n_1 + n_{\text{new}}-n_2=101 + 5-100=6).

Step2: Calculate the retention rate

Using the formula ( \text{Retention Rate}=\frac{n_1 - \text{Customers lost}}{n_1}\times100%) Substitute (n_1 = 101) and customers lost (=6) into the formula: (\text{Retention Rate}=\frac{101 - 6}{101}\times100%=\frac{95}{101}\times100%\approx94%)

Answer:

94%