Introduction

This project focuses on understanding why customers are leaving (churning) and identifying patterns and factors contributing to customer churn. By analyzing various aspects such as contract types, payment methods, tenure, and demographics, we aim to provide actionable insights to reduce churn and improve customer retention.

Key Metrics and Findings

1. Total Customers and Churned Customers
   • Total Customers: 7,043
   • Churned Customers: 1,869
   • Explanation: Out of 7,043 total customers, 1,869 have left, representing a significant churn rate that needs addressing.
2. Average Monthly Charge and Total Charges
   • Average Monthly Charge: $64.76
   • Total Charges: $16.06 million
   • Explanation: The average amount customers are billed monthly is $64.76, with total charges amounting to $16.06 million, highlighting the financial impact of churn.
3. Gender and Churn
   • Most Churned Gender: Female
   • Explanation: Female customers churn more than male customers, indicating potential gender-specific issues that need to be addressed.
4. Contract Types and Churn
   • Most Churned Contract: Month-to-Month (3,875 churned customers)
   • Other Contracts: Two-Year and One-Year
   • Explanation: Month-to-month contracts have the highest churn rate, suggesting customers prefer flexibility but might leave if not satisfied.
5. Demographics and Churn
   • Female Churn Characteristics:
     • No Dependents: High churn
     • No Partners: High churn
     • With Partners: 132 churned
   • Male Churn Characteristics:
     • No Dependents: High churn
     • No Partners: High churn
     • With Partners: 117 churned
   • Explanation: Most churned customers, both male and female, do not have dependents or partners, indicating that single customers without dependents are more likely to churn.
6. Tenure and Churn
   • Most Churned Tenure: 0–1 Year (999 churned customers)
   • Explanation: Customers in their first year are more likely to churn, suggesting the need for better onboarding and early engagement strategies.
7. Payment Method and Churn
   • Most Churned Payment Method: Electronic Check
   • Explanation: Customers using electronic checks churn more than those using other payment methods like bank transfer, credit cards, or mailed checks.
8. Internet Service and Churn
   • Most Churned Internet Service: Fiber Optics (1,297 churned customers)
   • Explanation: Fiber optic users are churning at higher rates, which could indicate issues with service quality or customer satisfaction with this particular service.

Key Metrics Calculation

• Total Customers:Total Customers = COUNTROWS(TableName)
• Churned Customers:Churned Customers = CALCULATE(COUNTROWS(TableName), TableName[Churn] = "Yes")
• Average Monthly Charge:Average Monthly Charge = AVERAGE(TableName[MonthlyCharges])
• Total Charges:Total Charges = SUM(TableName[TotalCharges])

Findings and Recommendations

• A significant number of customers (1,869 out of 7,043) churned.
• Month-to-month contracts had the highest churn rate.
• The electronic check payment method showed higher churn.
• Customers with a tenure of 0–12 months churned the most.
• Female customers churned more than male customers.
• Customers using fiber optic service churned more.

Recommendations:

• Focus on improving retention for month-to-month contracts, possibly by offering incentives for longer-term contracts.
• Investigate issues with electronic check payments and find ways to improve the payment experience.
• Implement targeted retention strategies for new customers, especially those within their first year.
• Enhance customer support and service quality for fiber optic users.
• Develop personalized engagement strategies for female customers to address their specific needs and concerns.