Question

Pit Stop's "Fire Wall" customers use their barbecue all the time, and many receive monthly shipments of supplies on a subscription. Out of a total of 24,000 "Fire Wall" customers, 10,272 are on long-term subscriptions. Last month, Pit Stop pruned their list and deleted 628 "Fire Wall" customers. Calculate monthly retention rate for Pit Stop's "Fire Wall" customers. (Report your answer as a percent. Rounding: tenth of a percent. Report an answer of 57.4.%, for example, as "57.4".) show step by step how you got answer.

Answer 1

Monthly Retention Rate
= (No. of customers at the end - No. of new customers during the period) / No. of customers at the start * 100
= (23372 - 0) / 24000 * 100
= 23372 / 24000 * 100
= 97.38% or 97.38

No. of customers at the end = Total at the beginning - No. of customers deleted from the list
= 24000 - 628
= 23372

The point given that, 10272 customers are on long-term subscriptions can be ignored, as the retention ratio is calculated taking the overall number of the customers, and not by short-term or long-term.