3 Comments → “CUSTOMER ATTRITION: MARKETING’S TICKING TIME BOMB”


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  1. […] road to customer service mediocrity continues unabated. In business, nearly two-thirds of consumers change suppliers for reasons having to do with poor service.  At an important university, the Chairman of the […]

  2. […] Customer attrition arithmetic is elementary: if a company has 1,000 customers and loses 100 of them over the space of a year then the attrition rate is calculated at 10 percent per year – a modest ratio in many industries. Continuing our example, if a company’s gross profit is $2,000,000, then each of 1,000 customers is worth $2,000 on average. If the company’s attrition rate is 10 percent, then the annual cost of attrition is $200,000. […]

  3. […] would respectfully like to make an enhancement to Raul’s blog posts regarding customer attrition. In those posts, and in his book, Raul calculates the average profit per customer in order to […]

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