Data analysis project: Telco Customer Churn

A telecom company is losing $139,000 every month due to customer churn and that’s just the actual loss. Potential additional losses could reach $136,000.

The churn rate is 26.54% — meaning 1 out of every 4 customers leaves

In this project, I designed four analytical pages to answer one key question: what are the main reasons customers churn?

I analyzed data from 7,043 customers and identified three main reasons for churn:

-Contract type — Month-to-month contracts have a 43% churn rate.

-Lack of Online Security — customers without it are twice as likely to churn.

-Older age — older customers churn at 42%, compared to 24% for the rest.

Three recommendations to reduce churn by 15%:

-Offer a discount for switching from month-to-month to annual ----contractsApply the discount during the first 3 months to encourage commitment.

-Include Online Security in all basic plansProviding this feature significantly lowers churn.

-Encourage switching from Electronic Check to Auto PaymentOffer a small incentive to motivate customers to adopt automatic payments.

Tools Used:

SQL, Excel, and Power BI were used to clean, analyze, and visualize the Telco Customer Churn dataset