Exploring Customer Churn in a European Telecom Company
We have thoroughly analyzed the churn dataset from a European telecom company. This dataset contains cleaned customer activity data, including a churn label that indicates whether a customer canceled their subscription.
Our primary objective was to identify the key factors contributing to customer churn. By analyzing the data, we aimed to uncover insights that would help improve customer retention. Based on our findings, we will provide actionable recommendations to reduce churn and enhance overall customer satisfaction.
Understanding Customer Churn in the Telecom Industry
Customer churn poses a significant challenge across various industries, but it is particularly critical in the telecom sector. The impact on company revenue due to customer churn is substantial. As a result, telecom companies are actively working to develop predictive models for identifying potential churn.
In this fiercely competitive market, the telecommunications industry faces an average annual churn rate of 15-25%. Notably, acquiring a new customer costs significantly more—up to 5-10 times—than retaining an existing one. Consequently, customer retention has become a top priority, surpassing customer acquisition in importance.
To address this, it is crucial to identify the factors that contribute to customer churn. By understanding these drivers, companies can take necessary actions to reduce churn and enhance overall customer satisfaction.
the main goal of our project is to deveolpe an understanding of cause of the customer churn which assists telecome operators to predict customers who are most likely subject to churn, and what to do retain the most valuable customer.