Customer Churn Analysis for TeleBoiler using Power BI

Reducing customer churn is a top priority at TeleBoiler (a fictitious satellite TV provider), as it's easier to retain current customers than to draw new customers. This project sought to provide insights into why customers are churning from TeleBoiler at the rate they are, the key characteristics of churners, and potential actions to be taken to retain customers.

Overview

Some insights from the exploratory analysis:

1. The churn rate for TeleBoiler is 27.3%.
2. The top reason why customers churn is because competitors made better offers than TeleBoiler did.
3. ~45% of the customers churn from TeleBoiler due to competitor-related reasons.
4. California has an extremely high churn rate (63.6%), and no other states have a churn rate greater than 36%. California also has the highest churn rate (80.7%) for customers with month-to-month contracts. TeleBoiler should further investigate the reason why so many customers in California decide to churn.

Recommendation: TeleBoiler needs to make more competitive offers than its competitors to stop losing customers. This can include investigating how offers from competitors are better than TeleBoiler, proposing a cheaper plan to at-risk customer groups before they churn, presenting retention offers to customers who switched to other providers, and finding ways to improve the attitudes of support persons.

Churners by Age Groups

Some insights from looking into churners by age groups

1. About 40% of older adults (65 or above) churned from TeleBoiler, which is ~14% higher than the churn rate for other age groups.
2. The top reason why older adults churn is because competitors made better offers.
3. Customers who are not in a group plan, in the age group 50, and with an account length of 12 months or less have a churn rate of 48.3%.

Recommendation: TeleBoiler should seek to improve the quality of its devices because it’s the #2 reason why customers churn and #1 reason why customers on unlimited plans churn.

Churners by State

California has the highest churn rate (63.6%) among all states and yet the lowest total # of customer service calls (43). The main reason why Californian customers churn is unspecified but accounts for over 60% of their churns! TeleBoiler should further investigate the reasons why so many customers in California in particular churn.

Customers by group plans, churn category, contract type, and gender

1. The churn rate is significantly higher among customers who are not in any group plans.
2. Customers who have monthly contracts are ~40% more likely to churn than those who have yearly contracts.
3. Gender differences don't seem to matter in customer churn.

Recommendation: TeleBoiler should incentivize customers to enroll in any of the group plans and/or sign yearly contracts, which can potentially deter customers from churning.

Unlimited Plan

Customers who are on unlimited plans but consume less than 5 GB are three times as likely to churn as those who are not on unlimited plans. The top three reasons why these customers churn are:

1. Attitude of support person
2. Competitor made better offers
3. Long distance chargers Notice the % of churners who selected reasons #2 and #3 are exceptionally high!

Churn Rate by Group Plan, Age Group, and Account Length

Customers who are not in a group plan, in the age group 50, and with an account length of 12 months or less have a churn rate of 48.3%.

Average Calls and Churn Rate by Payment and Contract Type

The average # of customer service calls for customers who are on a monthly contract and pay by direct debit is 1.48. the churn rate for these customers is 54.2%.

Extra Charges for Customers by Data Consumption and Plan Type

The average extra data charge for customers who are not on an unlimited data plan and consume 10 or more gigabytes is $31.14.