If a company has a customer retention rate of 80% and loses 20% of its customers, what is the remaining customer base if it started with 1,000 customers?
Practice Questions
1 question
Q1
If a company has a customer retention rate of 80% and loses 20% of its customers, what is the remaining customer base if it started with 1,000 customers?
800
900
1,000
1,200
Remaining Customers = Initial Customers x Retention Rate = 1,000 x 80% = 800.
Questions & Step-by-step Solutions
1 item
Q
Q: If a company has a customer retention rate of 80% and loses 20% of its customers, what is the remaining customer base if it started with 1,000 customers?
Solution: Remaining Customers = Initial Customers x Retention Rate = 1,000 x 80% = 800.
Steps: 5
Step 1: Identify the initial number of customers. In this case, the company starts with 1,000 customers.
Step 2: Understand the retention rate. The retention rate is 80%, which means the company keeps 80% of its customers.
Step 3: Calculate the number of customers retained. To find this, multiply the initial number of customers (1,000) by the retention rate (80%).
Step 4: Perform the calculation: 1,000 x 80% = 800.
Step 5: Conclude that the remaining customer base is 800 customers.
