How to Create and Use an Attrition Model

All Customers Aren’t Equal

While the popular method of dropping customers after a prescribed time period is simple and easy to implement, it assumes all customers are equal, which is rarely the case. The diagram “Re-Contact Profitability” shows the profitability of such efforts using customer segments based on recency and the amount of their first purchases. The dashed line shows the break-even point, below which the organization loses money when re-contacting customers.