Customer Churn Analysis in Tableau

July 2024

Impact

Through a comprehensive Tableau analysis of 6,687 customer records, this project identified critical churn drivers and revealed that competitor offerings and poor customer service led to a 26.86% churn rate, enabling targeted retention strategies for high-risk segments.

Problem Statement

The telecommunications company Databel faced a substantial customer retention challenge. With over a quarter of customers churning, understanding the underlying factors driving this behavior became crucial for developing effective retention strategies. The analysis needed to uncover patterns across multiple dimensions including demographics, service usage, and customer satisfaction metrics.

Approach

I developed a multi-faceted dashboard approach focusing on four key areas:

  • Overview metrics and geographical distribution of churn
  • Demographics and customer grouping patterns
  • Data plan usage and international calling behavior
  • Payment methods and contract type correlations

Analysis

I leveraged Tableau to create interconnected visualizations that revealed several critical patterns:


The primary reasons for churn were competitor-related, with "competitor made better offer" and "competitor had better devices" being the top two reasons. Customer service issues, particularly the attitude of support personnel, emerged as the third most significant factor.


Age-based analysis showed increasing churn rates with age, ranging from 14% in younger demographics to over 50% in the 85+ age bracket. Customers not belonging to any group showed a significantly higher churn rate of 32.85% compared to those in groups.


Data plan analysis revealed that unlimited data plan subscribers had consistently higher churn rates across all usage brackets, with rates between 27.72% to 34.71%. International plan usage showed a striking pattern - customers with active international plans but no international usage had a 66.67% churn rate.

Result

The analysis uncovered several actionable insights:

  • Competitive offerings and device quality were the primary churn drivers
  • Customer service quality significantly impacted retention
  • Older customers and non-grouped customers were at higher risk of churning
  • Unlimited data plans weren't effectively retaining customers
  • International plan pricing needed optimization, particularly for non-users