Customer Attrition Rate

Measures the rate at which customers discontinue their relationship with a service or product.

Customer Attrition Rate

Measures the rate at which customers discontinue their relationship with a service or product.

Customer Attrition Rate

Measures the rate at which customers discontinue their relationship with a service or product.

Formula

Attrition = (Customers at Start of Period - Customers at End of Period) / Customers at Start of Period * 100

Know your metric

Importance of

Customer Attrition Rate

  1. Customer Loss Tracking

Provides a clear measure of customer losses over time.


  1. Service Improvement Tool

Highlights areas where customer service can be improved.


  1. Retention Strategy Development

Necessary for developing effective retention strategies.

Drawbacks of

Customer Attrition Rate

  1. Does Not Reflect Growth

Focuses on losses, not accounting for new customer gains.


  1. Can Be Misinterpreted

High attrition may not always reflect poor service.


  1. Seasonal Variations

Attrition rates can vary with seasonal changes in the market.

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