Survey Question #2: What is Your Annual Attrition Rate?

Customer attrition is a challenge that affects every sales professional and organization, regardless of product offering or market served.

Over the years I have found that while attrition may not be prevented 100%, you can prepare in advance and curb the percentage of loss.

So the question then becomes not only what is your attrition rate, but how are you preparing and protecting your organization?

Simple math…

In many B2B industries the attrition rate is between 15 and 20%. In simple terms, if you began the year with $500,000 in your territory, no matter how well you perform you will end the year at between $400,000 and $425,000. This is through no fault of your own. Sound familiar?

6 Proven Steps in Countering Customer Attrition

  1. Acknowledge that customer attrition is real and that you must be prepared.
  2. Identify the customers that may be in danger of leaving.
  3. Ask: “Why are they considering leaving? Are they open to retention? If so, on what terms?
  4. Calculate the total of their potential loss.
  5. Implement a customized retention plan around their objectives.
  6. Measure and review often.

These are six steps that will counter and or curb your customer attrition. In using the above range of 15 to 20%, if you can retain 5% the math speaks for itself.

Stay tuned for survey question #3 What is Your Company’s Message?

To your success,
Andy

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