Editorial Type:
Article Category: Research Article
 | 
Online Publication Date: 01 Mar 2010

Attrition Analysis, Revenue Growth, and Customer Mortality

PE, ASA, CFA
Page Range: 32 – 36
DOI: 10.5791/0897-1781-29.1.32
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Abstract

Attrition analysis is a common method used to estimate life characteristics for grouped customer populations when informational deficiencies limit the use of more formal statistical techniques. Attrition analysis studies customer retirement behavior to estimate the mortality profile for the customer population. Attrition data may combine customer mortality and revenue growth information such that a closer examination of the inherent population retirement characteristics is necessary to accurately reflect customer survivor characteristics.

Copyright: © 2010 American Society of Appraisers
Figure 1
Figure 1

Account Attrition Survivor Curve

Figure 2
Figure 2

Attrition Comparison Survivor Curves

Figure 3
Figure 3

Survivor Curve Comparison

Contributor Notes

Richard K. Ellsworth is with Deloitte Financial Advisory Services LLP. He is an Accredited Senior Appraiser (ASA) in Business Valuation as well as a licensed Professional Engineer (PE) and a Chartered Financial Analyst (CFA). The views expressed in this article are those of the author and do not necessarily represent the views of Deloitte Financial Advisory Services LLP.

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