When marketing team aims to measure the rate at which the organization loses the customers over time, the Customer Attrition becomes a helpful metric.
Customer Attrition Overview
No matter how effective the marketing campaigns, the products, or the services are, there is no guarantee that customers will remain loyal to the brand throughout the lifetime of the business. In the future, there is a big chance that customers will drop off, so it is necessary for the marketing team to track the rate at which the customers are doing so.
The formula for Customer Attrition
To calculate the Customer Attrition Rate, the customers lost in the given period is divided by the total number of customers. Then, the answer will be multiplied by 100.
The Customer Attrition has a quarterly reporting frequency and the target audience are CEOs, sales managers, and marketing, and marketing managers.
The variations of this KPI come in customers lost in the given time period and customer turnover.
The Importance of Customer Attrition to the Marketing Team
Customer Attrition is very essential to any company because it is importantly equal to business loss. Through this metric, the team is given insights whether the number of lost customers lost increases or decreases. Using the collected data, they are able to create solutions to resolve the issue or continue the good performance of the marketing campaigns.