Attrition Analysis and Customer-Relationship Life Expectancy

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American Society of Appraisers Business Valuation Review™
Winter 2005 Volume 24, Issue 4 pp. 173-176
Richard K. Ellsworth, PE, ASA

Summary

The estimation of life expectancy is a fundamental element associated with the valuation of customer relationship intangible assets. In many instances, a simple method is desired to estimate the life characteristics of a customer population. Attrition analysis provides a simple method to establish survivor behavior for a customer population and life expectancy from consideration of the customer population attrition rate.
Attrition Analysis and Customer-Relationship Life Expectancy
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