Attrition Analysis
The Attrition Analysis shows how an attrition model can support a retention program. Typically, attrition models identify a large portion of future attriters (75%+) within a small segment of the customer base, usually 20-30% of the file. The tool requires a current attrition rate - the portion of the customers that go dormant or close his/her account. In addition, we ask that you fill in the size of your customer file. The report shows expected attrition rates by decile, and how many customers may go dormant and/or close their accounts within the ensuing 60-90 days. This example shows how an attrition model can help you target retention efforts on those most "at risk".
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Decile
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Customers
by Decile
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Cumulative
Customers
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Decile
Attrition
Rate
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# of
Attriters
by Decile
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Cumulative
# of
Attriters
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% of
Customers
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% of
Attriters
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1
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Contact only those who score in the top 20–50% to treat 80–90% of the attrition problem |
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2
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3
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4
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5
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6
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Do not treat customers who score in deciles 6–10 as their attrition risk is low |
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7
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8
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9
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10
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