How do you calculate customer retention rate for Becky's coffee shop if customers at the end of Q1 were 250, beginning were 225, and new customers were 35?

To calculate the customer retention rate, you need to determine how many of the initial customers at the beginning of the quarter were retained by the end of the quarter.

The formula for customer retention rate is as follows:

[

\text{Customer Retention Rate} = \frac{\text{Customers at End} - \text{New Customers}}{\text{Customers at Beginning}} \times 100

]

In this case:

• Customers at the end of Q1: 250

• Customers at the beginning of Q1: 225

• New customers during Q1: 35

Plugging in the numbers, first, we find out how many of the original customers were retained:

[

\text{Customers retained} = \text{Customers at End} - \text{New Customers} = 250 - 35 = 215

]

Now, using the retention formula:

[

\text{Customer Retention Rate} = \frac{215}{225} \times 100 \approx 95.56%

]

Rounding this figure gives a customer retention rate of approximately 96%.

This rate reflects how well the coffee shop is managing to maintain its original customer base from the beginning of