Customer attrition (or churn) rate

This measure calculates the rate at which customers leave a company over a given period of time. For example, if 5 out of 100 customers terminate service, the attrition rate is 5%. It is a Process Efficiency measure that helps companies optimize the performance of their "measure and evaluate customer service operations" process by minimizing waste and refining resource consumption.

Benchmark Data

Lock

Sorry! Not all users have access to all of our resources.

Want to unlock access to all of our resources?

Learn about Membership icon--arrow--right
Measure Category:
Process Efficiency
Measure Id:
100495
Total Sample Size:
454 All Companies
Performers:
25th
– Median
– 75th
–
Key Performance
Indicator:
No

Compute this Measure

Units for this measure are percent.

Back to Top
Customer attrition rate

Key Terms

Back to Top

Process efficiency

Process efficiency represents how well a process converts its inputs into outputs. A process that converts 100% of the inputs into outputs without waste is more efficient than one that converts a similar amount of inputs into fewer outputs.

Measure Scope

Back to Top

Cross Industry (7.0.4)

  • 6.5.1 - Measure customer satisfaction with customer problems, requests, and inquiries handling (10401) - Calculating satisfaction levels of customers by effectively evaluating the process of handling requests/inquiries of customers. Effectively calculate the performance of customer-requests/inquiries handling and resolution. Obtain information regarding requests/inquiries handling and resolution through customer feedback. Use it to explore new ideas and opportunities for enhanced customer requests/inquiries handling and resolution process.
    • 6.5.1.1 - Solicit customer feedback on customer service experience (11687) - Creating an avenue for which the customer can provide feedback on their experience with how their inquiry, problem, or request was handled.
    • 6.5.1.2 - Analyze customer service data and identify improvement opportunities (11688) - Reviewing customer service feedback to identify areas in which improvements can be made. Engage with management to discuss issues.
    • 6.5.1.3 - Provide customer feedback to product management on customer service experience (18126) - Handing over data to management to analyze common issues in regards to customer service.
  • 6.5.2 - Measure customer satisfaction with customer- complaint handling and resolution (10402) - Measuring the satisfaction level of customers as pertains to how their complaints are handled and resolved. This process element requires the organization to estimate the customers level of fulfillment with the process reconciling their complaints and towards the objective of ensuring customer retention. The feedback received can be used to develop concepts for new opportunities to boost the level of customer satisfaction.
    • 6.5.2.1 - Solicit customer feedback on complaint handling and resolution (11236) - Requesting customer feedback on the process of handling and resolving customer complaints. Obtain information about the effectiveness and performance of the customer complaint handling process from the customers through various means (e.g., online and by phone).
    • 6.5.2.2 - Analyze customer complaint data and identify improvement opportunities (11237) - Examining the information obtained through handling and resolving complaints for development/improvement opportunities. Categorize the customer complaints data on the basis of speed, accuracy, courtesy, price, product choice, availability, hours, location, etc. Determine complaint patterns in order to diagnose areas needing enhancement.
    • 6.5.2.3 - Identify common customer complaints (11689) - Determining complaint patterns in order to identify common issues. Document common problems for correction.
  • 6.5.3 - Measure customer satisfaction with products and services (10403) - Calculating satisfaction levels of customers with products/services. Obtain customer feedback on products/services, as well as the effectiveness of the advertising campaigns. Examine this information to reach meaningful conclusions, which could then be used to enhance the customer service operations.
    • 6.5.3.1 - Gather and solicit post-sale customer feedback on products and services (11238) - Obtaining customer feedback/review on the quality and utility derived from the products/services after the sale is complete. Use techniques such as surveys, feedback boxes, and user activity and usability tests.
    • 6.5.3.2 - Solicit post-sale customer feedback on ad effectiveness (11239) - Assessing the influence of advertisements on purchasing behavior. Use techniques such as surveys and product recognition tests, questionnaires or feedback flyers, and toll-free numbers in order to encourage customer interaction after the sale.
    • 6.5.3.3 - Solicit customer feedback on cross-channel experience (20117) - Engaging with the customer to understand their cross-channel experience. Find out what channels were effective and what areas need improvement.
    • 6.5.3.4 - Analyze product and service satisfaction data and identify improvement opportunities (11240) - Assessing the information collected on customer satisfaction levels with products/services in order to determine areas for improvement. Examine the data and information extracted from the customer feedback and reviews to measure the satisfaction levels of the customers. Identify opportunities that could enhance the customer satisfaction levels and the overall customer service strategy.
    • 6.5.3.5 - Provide feedback and insights to appropriate teams (product design/development, marketing, manufacturing) (11241) - Providing feedback from customers on products/services to the product management team. Analyze information collected through Gather and solicit post-sale customer feedback on products/services [11238]. Share with the product management team for consideration while improving existing offerings or developing new products/services.
  • 6.5.4 - Evaluate and manage warranty performance (12672) - Assessing the cost and effectiveness of warranties.
    • 6.5.4.1 - Measure customer satisfaction with warranty handling and resolution (20118) - Evaluating how satisfied customers are with how product warranties are managed and resolved.
    • 6.5.4.2 - Monitor and report on warranty management metrics (12676) - Comparing warranties by using using applicable metrics to see how they are handled and resolved. Develop and submit reports that summarize significant conclusions.
    • 6.5.4.3 - Identify improvement opportunities (20119) - Determining how warranties and warranty management can be made better and more efficient.
    • 6.5.4.4 - Identify opportunities to eliminate warranty waste (12674) - Finding ways to phase out unused or seldom used warranties.
    • 6.5.4.5 - Investigate fraudulent claims (20120) - Reviewing and assessing claims that contain deliberately incorrect information or that have been submitted with the goal to deceive the system.
  • 6.5.5 - Evaluate recall performance (20121) - Reviewing customer service feedback to identify areas in which improvements can be made. Engage with management to discuss issues.