Telecom Customer Churn Analysis

You have to keep the customers you have happy. If you’re not convinced that retaining customers is valuable, consider this research that shows increasing customer retention rates by 5% increases profits by 25% to 95%.

The bottom line: keeping the right customers is valuable. One of the key metrics in understanding whether your company is retaining customers is customer churn rate.

What is the customer churn rate?

“Customer churn rate is a metric that measures the percentage of customers who end their relationship with a company in a particular period"

How do companies typically use it?

Changes in a company’s churn rate could be a signal that something is working well (if the number goes down) or needs addressing (if the number goes up). The idea is that when you know that more customers or subscribers are cutting ties with your firm, you can work to adjust your marketing strategy or customer service approach.

How do you calculate it?

Churn Rate = telecom_customer_churn[Churn Count] / telecom_customer_churn[Customer Count]

the percentage of customers who end their relationship with your company in a given period.

What are the insights drawn from the experiment?

There is an overall Churn Rate of 27% with 17% of Revenue Churn.

Based on Customer Account Information,

Churned customers tend to opt for Month-to-Month Contract, Paperless Billing methods, and subscribe to Phone Service, and Fibre Optic internet connection.

Based on Customer Demographics,

Churned customers mostly lie in the age group of Senior Citizens, are not Married, and are highly correlated with the Tenure in years.

The top 3 reasons for Churn happen to be :

1. Attitude - of service provider, of a support person.2. Competitor - offered better devices, better offers.3. Price - too high.Inefficient Customer Service, Poor Network Quality, Competitive Providers, and Complicated Billing Services add up to Customer Churn Rate. These are the areas on which the Telecom company needs to pay attention.