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How Do I Perform an Attrition Analysis?

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  • Written By: Geri Terzo
  • Edited By: PJP Schroeder
  • Last Modified Date: 28 August 2016
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It is possible for attrition analysis to apply to a company's customer base or retaining employees. In either event, it is necessary to evaluate a set of parameters to determine the likelihood of customer turnover or employee departures. To perform attrition analysis, you should focus on the criteria and circumstances that ignite changes in a customer roster or turnover in personnel statistics. Some of those variables may include customer service when it comes to client attrition and career growth initiatives for employees.

To perform attrition analysis on customers, you will have to identify a series of factors that influence departures. For instance, recognize the level of risk that a client poses for leaving. This information may be obtained by creating a chart that lists customers, ages, and other personal factors that are available. Take a historical view on the rate of attrition, and assign a higher probability to customers who fall within a similar range or who display the same characteristics.

Identify the different types of attrition that can unfold within a business. For instance, the value tied to the loss of one client may not equal the value of losing another. Account sizes are likely to vary, as are the periods of time that a customer has been loyal to an organization. Recognizing the value that each client brings to a company will help support attrition analysis.

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It might be useful to hire a third-party firm or invest in a software solution. Either will not only identify the factors that influence customer behaviors but also quantify those criteria to create an attrition analysis. An expert can also provide techniques that will help prevent customer attrition by noting how to approach and service clients who are at risk of leaving based on attrition analysis in attempt to keep the business.

Corporate attrition analysis is another type of examination that can be made. In this environment, a company studies the behavioral patterns of employees in an attempt to recognize the dominating factors that lead to employee turnover. Some of the characteristics that can be studied are race, gender, and age of personnel. In this situation as well, it might be helpful to introduce a third-party firm to perform attrition analysis calculations to identify the leading factors behind attrition. Tips on how to address this might also be provided, perhaps advice on the development of mentor programs where employees can recognize a clear path for career growth within an organization.

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