Introduction
Customer churn analysis for bank customers is a project focused on understanding and predicting the behavior of customers who discontinue their relationship with a bank. The goal is to provide actionable insights that enable the bank to reduce churn rates and enhance customer retention, leading to increased profitability and customer satisfaction.
Key Insights
- Female customers have a higher rate of churn compared to male customers. Female customers comprised 45% of total customers, whereas they contributed 55% to churn.
- It is obvious that an inactive customer has a higher chance of churning compared to an active customer. There are 48% inactive customers, contributing 63% to churn.
- Germany has a higher rate of churn compared to others. Germany has 25% of the total customer base, with a 39% churn contribution.
- On the other side, France has 50% of total customers and a 39% churn contribution, i.e., the churn rate in France is lower compared to other countries.
- There is no role for credit cards in churn.
- There is a very high rate (40%) of churning among the age group 41–60. Churn rates in other groups are close to the average churn rate.