Reducing Customer Churn Through Data-Driven Insights.

Reducing Customer Churn Through Data-Driven Insights.

Customer Churn Analysis Dashboard

Customer retention remains one of the most important factors in sustaining business growth. While acquiring new customers is essential, retaining existing ones is often more cost-effective and contributes significantly to long-term profitability. To better understand why customer leave, I conducted an analysis using Telecom-customer-churn dataset consisting of 7,046 customers.

Design and Methodology

I used Excel to clean and create the dashboard, highlighting key metrics such as the overall churn rate, which customer segments has the highest churn, what services or product are more associated with churn, the relationship between tenure and churn and the effect of contract type on churn.

Key insights

First, i found that the overall churn rate is 26.54%. Meaning that out of the total number of customers which is 7,046, 1869 are churning. And when the analysis was carried out over time, it is discovered that the biggest drop happens in the first six months where nearly 54.71% of new customers quit but that number drops drastically to just 14.04% after 2 years which means that if new customers can get past 6 Month, their lifetime value will increase.

Secondly, i noticed some groups are more likely to leave. People over 60 years of age leave the most — 36% of them. Young customers (under 20) stay the longest. San Diego is a big issue, too — losing 185 customers, which is a huge 64% churn rate. Other cities like Fallbrook and Temecula also stand out.

Thirdly, Fiber Optic internet, has the highest churn — 40.72% when compared to other internet types. Also, customers without Online Security or Premium Tech Support are more likely to leave. But when they have these add-ons, they stay much longer. Entertainment services, like streaming, don’t really affect churn.

Finally, the type of contract matters a lot. Month-to-Month customers leave at a huge rate — 45.84%. But those who sign 1-year or 2-year contracts stay much longer — only 10.71% or 2.55% leave.

Recommendations

Based on the analysis, three key actions are recommended;

· Implement an aggressive “Onboarding and Welcome” program for new customers. If we can get them past Month 3, their lifetime value will increase.

· Automatically include or deeply discount Online Security and Tech Support for Month-to-Month users. It acts as an anchor that keeps them attached to us.

· There is need to take a closer look at Fiber Optic and what’s happening in San Diego — are prices too high or service poor?

In conclusion, the data shows us exactly where we’re losing customers. By focusing on new users, adding safety services, and fixing issues in key areas, we can slow down the leak and keep more customers for the long run.