Raw customer retention rate-profit adjusted retention rate

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Raw customer retention rate.

This is number of customers doing business with a firm at the end of a trading period expressed as percentage of those who were active customers at the beginning of the period.

Sales- adjusted retention rate.

This is the value of sales achieved from the retained customers expressed as a percentage of the sales achieved from all customers who were active at the beginning of the period.

Profit adjusted retention rate.

This is the profit earned from the retained customers expressed as a percentage of the profit earned from all customers who were active at the beginning of the period.

Reference no: EM133238572

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