Want this question answered?
What is your customer retention rate? Number of current customers __5086___. Total number of customers served in the past 12 months:__256___. Customer Retention Rate = #1 ÷ #2 = _____ (your percentage of retention). What is your goal for your customer retention rate this year? _____ *It is important to measure the change in this number with regularity. *When it is below 80%, then it is a serious area of concern.
Customer conversion rate = No. of customers walked in the store / No. of customer who made a purchase
customer defection is the rate at which customers defect or stop the usage of products of a company. business with high defection rate, would be losing their existing customers. in order to overcome this they use another term of customer retention, in simple words its to retain or prevent the existing customers to defect the product.Amandeep Sandhucustomer defection: It doesnt mean the total loss of a customer but rather the loss of any portion of that customer's business
There is a website called "Rate Us" that one could use as a customer satisfaction tool. On this website you will be able to gain customer insight, improve customer service, increase customer retention, and gather customer testimonials.
Usually complaints regarding the customer service of a company can be reported directly to that company. There are also websites that allow customer service to be rated.
Coupon rate
Actually they mean the same thing but they are used in two totally different situations. Interest Rate is the money paid by a bank that has accepted a deposit from a Customer. Coupon Rate is the money paid by a person who has issued Bonds to people in return for the money they have given him.
The yield to maturity will be 5% since both Face Value and Redemption value are same. If you purchase the bond for 95 or 105 your yield to maturity will change than what the coupon rate is.
Coupon rate is something that is paid semiannually. The interest rate is something that starts as soon as a bond is issued.
The interest rate paid on a bond is known as the coupon rate. A $1,000 fixed rate bond with a 5% coupon rate purchased at par would yield $50 annually in interest payments.
Coupon rate is simply just the annual coupon payments paid by the issuer relative to the bond's face or par value.Coupon rate can be calculated by dividing the sum of the security's annual coupon payments and dividing them by the bond's par value. For example, a bond which was issued with a face value of $1000 that pays a $25 coupon semi-annually would have a coupon rate of 5%.Source: investopedia
The difference between the coupon rate and the required return of a bond is dependent upon the type of bond. Junk bonds will have the biggest difference between its return and the coupon rate.
FRN are bonds that have variable coupon. The Floating Rate Notes are calculated by adding the spread to the fixed reference rate for that day.
The zero coupon bond is more sensitive to change in rate (inflation) because the market value is not based on a fixed coupon.
When market interest rates exceed a bond's coupon rate, the bond will:
80 percent
When the yield of a bond exceeds it coupon rate, the price will be below 'par' which is usually $100.