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Case Study - Customer Churning from a Telecom Provider

Exploring and analysing why customers are churning from a Telecom provider.

Churn Rate = Rate at which customers stop doing business with the Telecom provider.

Churning Categories

Visualising why customers churned in a descending order allows stakeholders a quick and easy reason as to why customers are churning. The main reason is based on competitors better prices, better products, more data, and higher download speeds

Groups and Categories

We can see clearly from the column chart that customers who have monthly contracts are more than customers who have yearly-based contracts. This ties into the main churning category being competitors. In a monthly contract, it is easier for customers to churn and move to a competitor.

Churn Rate by Data Consumption

The churn rate based on data consumption and if they are on an unlimited data plan shows that customers who use less than 5GB a month and on an unlimited data plan are significantly more likely to churn than customers who use less than 5GB and are not on an unlimited data plan.

A solution to this would be in the initial signing up of the customer stage to ask what their average monthly data usage would be and steer customers who say less than 5GB towards not taking up an international data plan.

Churn Rate by International Calls

Looking at the map we can see that California has a particularly high percentage of churnners based on the bubble size and colour. The table on the left highlights that the churn rate for customers who pay for an international plan but don’t call internationally is sky-high. A solution to this would be to contact customers who are on an international plan and remind them they can call internationally for free.

Final Insights

Even though we observe that the use of customer service is higher for churners, California is the outlier. The customers there have the highest churn rate (bubble size). However, California has the lowest number of customer service calls (line chart and bubble colour).

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