Understanding Customer Churn
Customer churn refers to the phenomenon of customers discontinuing their relationship with a company or brand. It occurs when customers decide to terminate their subscriptions, contracts, or services, thereby ceasing their engagement with the business. Churn can have a significant impact on a company’s bottom line, as acquiring new customers is typically more expensive than retaining existing ones.
Importance of Analysing Churn
Analysing customer churn is crucial for companies aiming to optimise their customer retention strategies. By understanding the reasons behind customer churn, businesses can identify areas for improvement, enhance customer satisfaction, and implement targeted retention initiatives. The ability to predict and proactively address churn can help organisations minimise revenue loss, strengthen customer loyalty, and drive long-term growth.
Overview of Factors Affecting Churn
In this project, I focused on exploring the various factors associated with customer churn in the context of a fictitious telecommunications company called Databel. This project was completed as part of a guided case study conducted through the Datacamp learning platform. Leveraging a comprehensive dataset, which includes customer information such as account length, call usage, international plan subscriptions, customer service interactions, and more, I sought to uncover insights and correlations that shed light on the drivers of churn.
The dataset, with 6,600 records, provides a wealth of information to analyse, including factors like average monthly data usage, extra charges, contract types, payment methods, and demographics. By examining these variables, I aimed to identify patterns and relationships that contribute to churn, ultimately helping Databel and similar companies devise effective strategies to mitigate customer attrition.
Using Power BI, I created interactive visualisations and data-driven analyses to present a comprehensive view of customer churn in the telecommunications industry. I invite you to explore the project and witness how data-driven insights can empower businesses to make informed decisions and improve customer retention.
Actions taken in the project
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Download the project dataset