TELCO CUSTOMER CHURN ANALYSIS PROJECT USING PYTHON

Objective:

• The analysis primarily investigates factors influencing customer churn, particularly focusing on payment methods and contract types.

Key Insights:

• Contract Type: Customers on month-to-month contracts show a higher tendency to churn compared to those on yearly or bi-annual contracts. This suggests that long-term contracts may improve customer retention.
• PaymentMethods: A significant proportion of customers using electronic checks are more likely to churn compared to those using other payment methods (credit cards, bank transfers, etc.). This could be due to convenience or trust issues associated with electronic check payments.

ChurnRatebyTenure:

• Customers with shorter tenure (less than one year) are more likely to churn, indicating the criticality of initial engagement strategies.

Visualizations:

• The visualizations, including bar plots and line graphs, highlight the disparity in churn rates by different contract types and payment methods. They also show trends over customer tenure, supporting the need for personalized retention strategies.

Executive Summary:

Objective:

• The analysis explores customer churn patterns, focusing on various factors such as payment methods, contract types, tenure, and demographic attributes.
• The goal is to identify which factors are most strongly associated with higher churn rates to guide customer retention strategies.

Key Insights & Findings:

• Contract Type and Churn:Customers on month-to-month contracts exhibit the highest churn rate, with 42% of such customers likely to churn.
• In contrast, customers on one-year and two-year contracts have churn rates of 11% and 3%, respectively.
• Implication: Longer contract periods serve as a strong retention tool, as customers with extended commitments are far less likely to leave.

Visualizations & Data Insights:

• BarCharts and Line Graphs: The visual representation of churn by payment method clearly shows that customers using electronic checks churn almost three times as much as those using more traditional or secure methods like credit cards.
• Customertenure vs. churn rate visualizations reveal a clear declining trend in churn as customers' tenure increases, underscoring the need for early-stage customer loyalty programs.