Customer attrition is the loss of clients or customers. It is commonly presented as a percentage over a period of time. This metric is critical when measuring a company’s performance. Customer attrition is also commonly known as customer turnover, customer churn, or customer defection
Customer attrition and customer retention are two sides of the same coin. Customer attrition, refers to the loss of customers, while customer retention focuses on keeping existing customers and ensuring their continued business. Effectively managing customer retention can reduce customer attrition, as strategies aimed at retaining customers—such as improving customer satisfaction, offering loyalty programs, and providing excellent customer service—help prevent customers from leaving. In essence, reducing attrition and increasing retention are both crucial for maintaining and growing a company’s customer base.
