Smith Company is a start-up established when John Smith, a disgruntled salesman, left Jones Company, taking his 500 customers with him. The data below reflects the first year of the Smith Company and corresponding year of Jones Company.
Smith Company Jones Company
Customers at beginning of year: 500 Customers at beginning of year: 17,000
Customers at end of year: 250 Customers at end of year: 8,500
Calculate the retention rate for Smith and the defection rate for Jones. In one sentence, which company is doing better on customer loyalty and why?