Lost Client Ratio Law and Legal Definition

The Lost Client Ratio for an organization is referred to as the percentage of clients who stop buying the products or services. For instance, lost client ration includes the number of clients at beginning of year/the number of clients leaving, equals to loss client ration.

There are two types of losses, namely, controllable losses and non-controllable losses. Losses which cannot be attributed to clients going out of business, or clients relocating or otherwise unable to purchase come under controllable losses. Clients leaving due to price, customer-service related issues, competition and other business related issues come under non-controllable losses.