Which of the Following Customer Retention Measurement Methods Is Described

question 10

Multiple Choice

Which of the following customer retention measurement methods is described: the percentage of customers at the beginning of the year that are still customers by the end of the year?

• A) customer valuation
• B) retention rate
• C) complaint analysis
• D) defection rate
• E) benchmark

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Definitions:

Cost Method

An accounting approach where investments are recorded at their acquisition cost, without subsequent change for market value fluctuations.

Liquidated

The process of converting assets into cash or using them to pay off liabilities in the event of a business closure, bankruptcy, or when assets are no longer needed.

Subsidiary Company

A company that is completely or partly owned and partly or wholly controlled by another company, known as the parent company.

Parent Company

A corporation that owns a majority of the shares of another company, thus controlling management and operations.