Account Attrition, Survivor Curves, and Customer Relationship Valuation

BVResearch Pro
American Society of Appraisers Business Valuation Review™
Winter 2010 Volume 29, Issue 4 pp. 152-159
Richard K. Ellsworth, PE, ASA


Customer relationship populations are aggregated from individual customer accounts with statistical procedures founded in actuarial science used to numerically portray customer retirement behavior. Customer account life expectancy is described as a survivor curve that explains the pattern of customer relationship decline for a population. The customer relationship valuation process necessitates the separation of the actuarial life characteristics from the economic attributes of the customer relationship population with the application of a discounted cash flow analysis.
Account Attrition, Survivor Curves, and Customer Relationship Valuation
PDF, Size: 144 KB

Copyright American Society of Appraisers

The information contained in this product is based on content obtained by ASA from sources considered to be reliable, but is not guaranteed as to accuracy and does not purport to be complete. BVR and ASA accept no liability for the use of such information which is provided "AS IS" and with no warranties, express or implied.