Customer retention rates are calculated by subtracting which of the following?

The correct choice, which indicates that customer retention rates are calculated by subtracting the number of new customers acquired during a period from the number of customers at the end of that period, aligns with the essence of measuring customer retention. The retention rate focuses on understanding how many existing customers remain with a business after accounting for new customers acquired.

This calculation provides insight into customer loyalty and the business’s ability to keep its clientele over time. By starting with the total number of customers at the end of the period and then subtracting those who were newly acquired during the same period, the result reveals how many of the original customers continued to engage with the business. This is crucial for assessing the effectiveness of customer retention strategies and understanding turnover rates within the customer base.

Other choices do not accurately reflect the calculation for customer retention rates. They focus on different relationships among customer counts without isolating the retention aspect of existing customers effectively.