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    Attrition Rate

    Attrition rate is a metric that measures the number or percentage of customers a business loses within a given period of time.

    What Is Attrition Rate?

    In today’s fast-moving economy, it’s critical for businesses to have a clear understanding of who their customers are and how they’re engaging — or not engaging — with their brand. 

    The attrition rate is a key performance metric (KPI) that helps businesses gain insight into their customer base and determine how successful their customer engagement and retention initiatives are.

    A business can determine their attrition rate by selecting a time period (typically a month or year), measuring the number of active customers at the beginning of that period, and then subtracting the number of customers at the end of that period from that original number. The difference, often represented as a percentage, is the attrition rate.

    The benefits of this metric are compounded when measured multiple times. Multiple yearly attrition rates, for example, can show a business how their customer base is growing or declining over the long term.

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