Retention rate for smith and the defection rate for jones

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Smith Company is a start-up established when John Smith, a disgruntled salesman, left Jones Company, taking his 500 customers with him. The data below reflects the first year of the Smith Company and corresponding year of Jones Company.  

Smith Company                                                          Jones Company

Customers at beginning of year: 500                          Customers at beginning of year: 17,000

Customers at end of year: 250                                    Customers at end of year: 8,500

Calculate the retention rate for Smith and the defection rate for Jones. In one sentence, which company is doing better on customer loyalty and why?

Reference no: EM131861391

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