hard20 pts · first answer countsretentionbusiness-metrics

From monthly to annual churn

Your monthly churn rate is a steady 5%. A board member says that means 60% of customers leave each year. What is the more accurate figure?

A.Exactly 60%B.About 5%C.About 95%D.About 46%: retention compounds, so 0.95 to the power 12 is about 54% retained

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