Member Discussion

Customer Attrition... Meaningful Or Meaningless

We all know the importance of sticky customers.

We all know the destruction of attrition.

We all have seen many definitions of attrition.

Operators know their own correct attrition numbers, but investors often get a different number. For example ADT, as a public company, uses the term of Gross Revenue Attrition, which does not let investors know the true attrition, just a camouflaged number that can be meaningless, because it can be influenced. We would like to see ADT report attrition with the simple facts, such as; Number of customers lost, and the related RMR lost. After that number in reported they then can use whatever formula that fits the Report.

One of the reasons for dilution of market value is the questionable reporting of this critical unit-of-measurement, attrition.

How do you report attrition?