Overview
This project explores customer churn trends for a fictional telecom provider in California, using Power BI for data visualization. The dataset contains 7,043 customers, detailing churn behavior, satisfaction scores, revenue insights, and service usage. The objective was to identify key factors influencing customer retention and churn, and provide actionable insights for improvement.
Why Do Customers Leave?
Customers primarily leave due to:
- Low satisfaction (avg. score: 1.7).
- Short-term contracts (Month-to-Month).
- Early tenure drop-offs, indicating onboarding and initial experience issues.
Churn Analysis
- Churn Rate: 26.54% (2,000 customers left).
- Key Drivers:
- Low satisfaction (avg. 1.74).
- Month-to-Month contracts had the highest churn.
Revenue Insights
- Lost Revenue: $1.77M due to churn.
- Highest churned revenue segment: Month-to-Month contracts.
- Growth Opportunity:
- Long-term contracts and improved customer satisfaction drive higher retention revenue.
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- Long-term contracts and improved customer satisfaction drive higher retention revenue.
Service Usage Trends
- Engagement increases with tenure and satisfaction.
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Onboarding improvements could boost early-tenure usage and retention.
Churn by Services
- Phone and Internet services had the highest churn counts.
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Online security and tech support services had over 90% churn rates, indicating dissatisfaction with these add-ons.
Customer Satisfaction Analysis
- Average Satisfaction Score: 3.24
- Low satisfaction drives churn:
- 45.53% churn rate among dissatisfied customers.
- Retained customers had an average satisfaction of 3.8, while churned customers averaged 1.7.
Key Takeaways:
- Higher satisfaction directly correlates with lower churn rates.
- Improving service experience and contract structure can help retain more customers.
Conclusion
This Power BI dashboard provides a clear data-driven approach to understanding customer churn. The main takeaways include:
✅ Short-term contracts and low satisfaction are major churn drivers.
✅ Electronic check payments contribute heavily to churned revenue.
✅ Early engagement and onboarding improvements can enhance retention.
✅ High-value customers tend to stay longer.
By addressing these key factors, telecom companies can reduce churn, boost revenue, and improve customer loyalty.