Here’s an easy way to calculate the percent of customers you have retained over the year. (Many banks like to calculate this for each of their key products.)

The most accurate calculation is to look at 12 months of data. Some even measure retention monthly on a rolling 12-month basis.

Step 1: Create a 12-month chart to track your information. Example for checking accounts:

 

Step 2: Fill in the data for each month

Step 3: Calculate your attrition rate: Total of Column D divided by Average of Column B = Attrition Rate

Step 4: Retention rate: 1 minus Attrition Rate

Questions? Call me!

Rhonda Handy