Cloud Kicks asked a Service Cloud Consultant to help it determine its customer retention rate.

In the Industry Knowledge domain, Salesforce defines customer retention rate as the percentage of customers retained over a given period, excluding newly acquired customers. The formula requires:

Thus, the correct variables are customers at the start, customers at the end, and new customers acquired during the period.

Option B and C include incorrect parameters—“old customers who returned” and “customers lost”—which are not used directly in retention rate formulas.

Referenced Salesforce Materials:

Service Cloud Consultant Exam Guide – Industry Knowledge Domain (metrics such as retention, churn, and customer satisfaction).

Salesforce Trailhead: “Measure Customer Retention and Churn” (defines retention rate calculation).