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Glossary
Glossary

Attrition

Attrition describes the loss of customers or the termination of a relationship according to a business definition. Explicit cancellation and prolonged inactivity are not the same thing. The inactivity threshold should be adapted to the buying cycle. A useful analysis examines cohorts and reasons for leaving.

Coup de Poing editorial team2 min
Measure performance

A concrete example

A base of 1 000 customers at the beginning of the period loses 80 customers according to an agreed definition of inactivity: the initial attrition is 8%.

A point to consider

A seasonal decrease in purchases is not necessarily a loss. Define the inactivity period and distinguish between cancellation, no purchase, and exit from the programme.

Distinguish between early warning and confirmed departure

Define an alert threshold before the loss threshold used in your measurement. A slowdown can trigger a needs assessment, a service contact, or an incident analysis. Track voluntary departures, closed accounts, and inactivity separately. This analysis allows you to tailor your response and verify, over a later period, whether reactivation is actually sustainable.

Questions to ask your team

  • Does your expiration date reflect the usual purchasing cycle?
  • Can you distinguish between a lasting reactivation and a one-off purchase?

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Glossary 2 min

Retention

Retention measures the continuity of a relationship or activity over time. It can relate to a contract, an account, or a behaviour. The definition of an active customer and the observation window are essential. High retention can have several causes; it does not, in isolation, prove the effect of a programme.

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Glossary 2 min

Purchase Frequency

Purchase frequency describes the number of purchases per customer over a defined period. It must take into account the consumption cycle and differences between populations. An apparent increase may result from a shift in purchases over time. Observing cohorts helps to interpret the continuity of behaviour.

Understand and apply
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