Maven Communications - Customer Retention Insights

Introduction:

Churn data for a fictional Telecommunications company that provides phone and internet services to 7,043 customers in California, and includes details about customer demographics, location, services, and current status.

Role played:

I have been hired as a BI consultant to help the company improve retention by identifying high-value customers and churn risks, and have been asked to present my findings to the CMO in the form of a single single-page report or dashboard.

Tools Used:

Alteryx for Data Analysis (Github)

Tableau for Data Visualization

Executive Summary (Insights & Analysis):

Maven Communications has a robust customer base with significant revenue. However, churn analysis reveals potential risks, especially within high-value customer segments. This report leverages insights from the metrics to recommend strategic actions for enhancing customer retention.

Churn Overview:

While we have a healthy number of customers joining, the churn rate, especially among high-value customers, is a concern. The total revenue impacted by churn suggests a need for immediate action. Geographical analysis indicates that San Diego is a churn hotspot, mainly due to competitive offers.

Overall Customer Base Analysis:

With a substantial customer base (7043 customers) and revenue ($21.37M), the company is performing well. A Significant number of customers have churned (1869 clients) leading to a notable revenue ($3.68M) loss. However, the majority of the customers are staying indicating revenue retention. New customers have joined in the last quarter, but the revenue is minimal.

High Value Customer Churn Analysis:

Of the 1,409 high-value customers, we've seen 196 churns, resulting in a revenue loss of $1.51M, which accounts for a substantial portion of revenue. The retention of high-value customers, however, has safeguarded $9.53M in revenue, emphasizing the importance of this segment.

Geographical Analysis:

"San Diego" has the highest Churn, and the primary reason is competitors offering better deals.

Key Drivers of Churn:

Several Churn drivers include the following,

• Single customers tend to churn the most more than married ones.
• Customers declining recent offers are more likely to churn.
• The Senior citizens and Middle-Aged adults show higher churn rates.
• Customers on month-to-month plans churn more than those on longer contracts.
• Customers with fibre optic internet have higher churn.
• Customers using “Bank Withdrawal” as payment mode are more likely to Churn.
• Customers without dependents show higher churn.
• Customers who opted out of Premium tech support, Online security, and online backup, show a high churn rate.

Retention Strategies:

• Implement data-driven personalization in service offerings, particularly targeting single customers and those on month-to-month plans.
• Launch a 'San Diego’ campaign to counteract competitive offers, including price matches and exclusive benefits to tackle competition.
• Introduce a loyalty program that rewards tenure and revenue contribution to reduce churn among middle-aged and senior demographics.
• Conduct a bi-annual analysis to realign service features and pricing structures, to avoid churn.
• Upgrade the fibre optic network to reduce service-related churn.
• Introduce a dedicated customer support team for high-value customers.

Action Plan and Recommendation:

Initiate and roll out a pilot program in San Diego, providing personalized offers and better price plans, focusing particularly on high-value clients. Based on how it works, implement the program in other regions.

Regularly review and adjust pricing and service packages based on customer feedback and market trends.

Conclusion:

Implementing these strategies should lead to an improved retention rate, particularly among high-value customers. We must remain vigilant and responsive to both data trends and customer feedback to sustain and grow our customer base.