If a company has a customer retention rate of 80% and starts with 1,000 customers, how many customers will remain after one year?

1 question

1 item

Q: If a company has a customer retention rate of 80% and starts with 1,000 customers, how many customers will remain after one year?

Solution: Remaining Customers = Initial Customers x Retention Rate = 1,000 x 0.80 = 800.

Steps: 6

Step 1: Understand the initial number of customers. The company starts with 1,000 customers.
Step 2: Know the customer retention rate. The retention rate is 80%, which means 80 out of every 100 customers will stay.
Step 3: Convert the retention rate from a percentage to a decimal. 80% as a decimal is 0.80.
Step 4: Multiply the initial number of customers by the retention rate. This means you calculate 1,000 customers x 0.80.
Step 5: Perform the multiplication. 1,000 x 0.80 equals 800.
Step 6: Conclude that after one year, 800 customers will remain.