Final answer:
The number of people who stop using a service divided by the average number of total participants is known as the Customer churn rate (B). It's a key business metric reflecting on customer retention.
Step-by-step explanation:
The correct answer to the question is B) Customer churn rate. Customer churn rate is defined as the number of people who stop using a service divided by the average number of total participants. This metric is essential for businesses as it reflects customer retention and loyalty, vital components of a successful business model. To calculate this, you would tally up the number of customers that ceased using the service within a given time frame and divide that by the average number of total customers during the same period.
For instance, if an internet marketing company had 100 customers at the start of the year, and by the end of the year, 10 had stopped using the service, the annual customer churn rate would be 10/100, resulting in a churn rate of 0.1, or 10%.
For example, if a company has 1000 customers and 100 of them churn in a given month, the churn rate would be 100/1000 = 0.1 or 10%.