Telecom-Customer-Churn-Analysis

This README file accompanies the project analyzing customer churn in the Telecom industry, utilizing SPSS for data analysis..

Project Overview:

The objective of this project is to analyze customer churn in the telecommunications industry. Customer churn refers to the rate at which customers stop doing business with a company. By understanding the reasons behind churn, telecom companies can take proactive measures to retain customers and improve customer satisfaction.

Data Source:

The data for this analysis was obtained from a publicly available Telecom Customer Churn dataset (https://mavenanalytics.io/challenges/maven-churn-challenge/6).

Analysis Steps:

1. Data Preparation:

The data was loaded from a CSV file named telecom_customer_churn.csv. Descriptive statistics were computed for key variables.

2. Frequency Analysis:

Frequencies were calculated for various customer service subscriptions to understand their distribution among customers.

3. Cross-tabulation:

Cross-tabulation was performed to explore the relationship between churn category (churned vs. not churned), churn reason, and service subscriptions.

4. Results and Findings:

The analysis yielded valuable insights into customer churn behavior:

a. Service Preferences:

i. Phone and internet services were near-universally subscribed to (over 78%). ii. Value-added services like online security, online backup, and device protection had moderate adoption rates (around 29-34%). iii. Premium tech support and streaming services were used by a significant portion of customers (around 29% and 40% respectively). iv. Most customers opted for unlimited data plans (around 67%). v. A majority of customers (over 50%) were on month-to-month contracts.

b. Churn and Service Subscriptions:

i. Customers who churned due to dissatisfaction were less likely to have subscribed to value-added services like online security and tech support. ii. Customers with premium tech support showed lower churn rates due to service issues. iii. Month-to-month contracts exhibited higher churn rates compared to longer contracts.

Conclusion

The analysis highlights the importance of understanding customer service preferences and churn reasons. Telecom companies can leverage these insights to:

i. Promote value-added services that address customer concerns and enhance satisfaction. ii. Offer incentives for longer-term contracts to encourage customer loyalty. iii. Prioritize proactive customer service to prevent dissatisfaction-driven churn.