GREY:CRIUF - Post by User
Post by
SirHumpsAloton Feb 28, 2018 1:46pm
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Post# 27637774
Perceptions...
Perceptions...The author brings up an important metric that we all must pay close attention too. That is customer attrition. That is simply the number of customer lose every month who do not renew or who cancel thier service.
So the author wants you to look at the lost customers every month and he is claiming that crius needs to buy customers to off set this loss. Basically he is claims that they are trying ot fill a bucket with a hole in it.
Let's be perfectly clear here, every business with contracted customers has attrition. This is not a Crius problem. This is industry standard. Bell Canada, Rogers, Enbridge, Irving Oil, AT&T, Verizon, etc etc.
What he did not tell you is that the attrition numbers are lower than the organic increases. That means that without buying new business the company is still growing. They buy new business to grow FASTER. The financials ended Sept 2017 the company added 197K organic customers and lost 129K customers. They bought 350,000 customers. The other thing that must be noted is that when companies change ownership the attrition rates are temprarily increased because consumers don;t always like the new company or simply don;t want to not have the choice of who they use. So the 129K attrition is a high number because of recent aquasitions BUT organic growth still out paced it!!!
The company is growing organiclly and this in my opinion is a VERY strong measure of the abilty of this company to continue growing its consumer base.