Client Attrition Rate
Percentage of clients who close their accounts or move assets away in a period
What is Client Attrition Rate?
Client attrition rate is the percentage of clients lost in a period. It shows how many clients a business retains from one period to the next.
For firms that depend on ongoing client relationships, attrition directly affects revenue and growth.
How this KPI is measured
- Function
- Customer Success & Service
- Sub-function
- Client Retention
- Industry
- All Industries
- Type
- Lagging
- Impact
- Risk
- Unit
- %
- Measurement frequency
- Monthly / Quarterly
- Formula
- (Clients lost in period / Total clients at start of period) × 100
How to calculate it
Divide clients lost in the period by total clients at the start, and multiply by 100.
For example, if a firm started the year with 200 clients and lost 16, attrition is 8%.
Record the reason for each loss, and separate clients lost by choice from those that ended for other reasons, such as a project finishing.
Where it is used
Protecting revenue
Track and reduce losses.
Understanding client loss
Learn the reasons.
Improving client service
Focus on retention.
How to improve it
Tips and common mistakes
- Not all attrition is bad. Some clients are unprofitable.
- Look at revenue attrition as well as count.
- Track reasons over time.
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