An increase from 80% to 90% in customer retention would have what effect on the average customer life?

Name: An increase from 80% to 90% in customer retention would have what effect on the average customer life?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average customer life is calculated as 1 / (1 - retention rate). Increasing the retention rate from 80% (0.8) to 90% (0.9) changes the average customer life from 1 / (1 - 0.8) = 5 years to 1 / (1 - 0.9) = 10 years, which is an increase of 5 years.

An Increase from 80% to 90% in Customer Retention Would