Question

The first step in the process of calculating the customer defection rate is to:

A. distinguish the causes of customer attraction
B. estimate how much profit is lost when the company loses customers
C. define the point at which the defection rate reduces profit by at least 2 percent
D. calculate the lifetime value of each customer
E. define and measure the company's customer retention rate

Answer 1

The first step in calculating the customer defection rate is to define and measure the company's customer retention rate.

Step-by-step explanation:

The correct answer is E. define and measure the company's customer retention rate. The first step in calculating the customer defection rate is to define and measure the company's customer retention rate. By determining how many customers the company is able to retain, it becomes possible to calculate the rate at which customers are defecting.