The retention rate of a particular brand of engine oil in 2013 is 87%. If 6,000,000 customers purchased the brand in 2012, how many of these customers purchased the same brand in 2013?
I'm not totally sure about this, but I think the retention rate is the percentage of 2012 customers who came back in 2013. So I'll multiply 6,000,000 by 0.87 to find the number of returning customers.
Wait, I'm a bit confused. Is the retention rate the same as the percentage of customers who purchased the same brand in 2013? Or do I need to do some other calculation?
Okay, let's think this through step-by-step. The question gives us the retention rate of 87% and the number of customers in 2012. To find the number of customers in 2013, we need to take 87% of the 2012 customers.
Alright, let's think this through. If the retention rate is 87%, that means 87% of the 6,000,000 customers purchased the same brand in 2013. Time to break out the calculator!
Clement
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