Customer Retention Analysis

This is an analysis of a telecoms company's retention data. They would like to know in advance which customers are at risk of leaving. Already, they get in touch with customers after they have terminated their contracts, but this is reactionary and they want to change their approach to customer retention. 

KEY INSIGHTS:

• Customers with a tenure of less than 1 year & 0 tech tickets (Fig. 1) have a 48% churn rate, and a 99% churn rate if they have tech tickets (Fig. 2).

• Customers with 1 tech ticket are 3 times more likely to churn than those with none, and the likelihood to churn remains relatively constant with an increase in tech tickets until the 5th tech ticket.

• <14% of the customers have a tech ticket.

• 89% of all churned customers are on a monthly subscription. Customers on a monthly subscription have a 42% churn rate.

• 75% of all churned customers use paperless billing. Customers that pay by electronic check have a 45% churn rate.

• Customers that subscribe to the Fibre Optic service have a 42% churn rate, this number is twice as high as those on DSL service and it goes up to 70% for Fibre Optic customers with a < 1-year tenure.