How to Create and Use an Attrition Model

Notice how an organization with results like those shown would likely make an overall profit contacting all customers for 24 months. However, some customers are in segments that are contacted at a loss. Other customers are in segments that could be contacted profitably if reached beyond 24 months.

In some cases, such as low initial orders, customers are unprofitable if contacted within a few months. It’s likely you’ll spend more money re-contacting them during the next 24 months than you made on the initial sales. In other cases, such as a higher initial sale, the highly profitable results more than make up for a loss in lower segments, but re-contacting is no more frequent and stops at the same time if no second purchases are made.