Customer Churn Analysis Telecommucation Company

Tools : Google Colabs, Canva, Github
Programming Language : Python
Dataset : Customer Churn Telco Company
Libraries : Pandas, NumPy, Sklearn
Visualization : Matplotlib, Seaborn, yellow-brick
Dataset : Disediakan oleh Kaggle
Skillset : Analytical Thinking, Business understanding, Python Data Preprocessing, Data Visualization
Slide : https://www.canva.com/design/DAGKLan0tyA/-77VAMY-bO7iAha0xnK4SA/view?utm_content=DAGKLan0tyA&utm_campaign=designshare&utm_medium=link&utm_source=editor

📂 Problem Statement

Introduction

Understanding customer behavior is pivotal in refining a company's marketing strategy. By comprehensively analyzing customer preferences, needs, and purchasing patterns, a company can enhance the customer experience, boost satisfaction, and improve overall sales performance. Investigating the factors contributing to customer churn yields critical insights that can inform more effective and targeted marketing strategies.

Goals

The goal of analyzing customer profiles and behaviors is provide recommendations that can be utilized to reduce the churn rate of customers.

Objective

Extracting deeper insights into customer profiles and behaviors.

📂 Data Preparation

Data Understanding

Before conducting data visualization, several stages of data understanding must be undertaken:

Null value and missing value of the dataset will be handled to focus the data more.
Duplicated data of the dataset will be handled to focus the data more.
Understanding data distribution by examining the statistical summary.
Target features for the visualization will be choosed to focus the data more.

📂 Data Visualization

Location

In Bandung, 33% of the total revenue of IDR 89,610,924 was derived from churned customers, with the average expenditure of churned customers increasing by 21.64%.
In Jakarta, only 29.91% of the total revenue of IDR 232,442,132 was from churned customers, with the average expenditure of churned customers increasing by 13.74%.
Therefore, although Jakarta's total revenue is higher, the percentage and increase in expenditure from churned customers in Bandung are greater. This indicates that while churned customers contribute approximately 33% of the total revenue in Bandung, their average expenditure is higher compared to the overall average customer expenditure. This could suggest that higher-spending customers are more likely to churn, or that losing these customers has a significant impact on revenue.

Payment Method

For the Pulsa payment method, revenue from churned customers is IDR 60,125,676, accounting for 46.50% of the total revenue of IDR 129,338,625.
In the Digital Wallet payment method, revenue from churned customers is IDR 11,725,233, representing 23.46% of the total revenue of IDR 49,978,227.
For the Debit payment method, revenue from churned customers is IDR 15,062,853, which is 20.47% of the total revenue of IDR 73,583,432.
In the Credit payment method, revenue from churned customers is IDR 12,178,842, or 17.63% of the total revenue of IDR 69,152,772.
Based on revenue from churned customers and the increase in average expenditure of these customers compared to the overall average expenditure: Pulsa, Digital Wallet, Debit, and Credit. Understanding this order of impact allows the company to prioritize retention strategies for the most affected payment methods, particularly Pulsa and Digital Wallet, to minimize revenue loss due to churn.

Product

Video Product has the greatest impact, with 31.58% of total revenue coming from churned customers and a significant increase in their average expenditure (+5.01%). The loss of these customers significantly affects the company's revenue.
Education Product show 23.52% of total revenue coming from churned customers and an increase in average expenditure (+4.55%). This indicates that high-spending customers tend to churn, significantly impacting revenue.
Music Product accounts for 22.45% of total revenue from churned customers and an increase in average expenditure (+4.28%). This also greatly affects the company's revenue.
Game Product has the smallest impact, with 14.93% of total revenue from churned customers and an increase in average expenditure (+2.20%). Although this percentage is lower, the increase in expenditure still suggests that high-spending customers are likely to churn.
Based on revenue from churned customers and the increase in average expenditure of these customers compared to the overall average expenditure, the order of impact is as follows: Video Product, Education Product, Music Product, and Game Product. Understanding this order of impact allows the company to prioritize retention strategies for the most affected products, particularly Video Product and Education Product, to minimize revenue loss due to churn.

📂 Customer Personality Analysis

Characteristics of customer who most likely churned

46, 50% (IDR 60.125.676) of churned customers are used Pulsa for Payment.
33% (IDR 29.572.946) of churned customers are located in Bandung.
31,58% (IDR 53.317.056) churned customers are from the Video Product segment.

Putriarrum/Analysis-of-the-Factors-Causing-Customer-Churn