Visus - Customer Retention Analysis

Customer Retention is the process of engaging customers to remain a part of the business. These customers find value in the products and services of the company and therefore stick around for sometime. according to Harvard Business school, acquiring a new customer is anywhere from five to 25 times more expensive than retaining an existing one.

Customer Retention Analysis is the process of studying metrics to understand how and why customers leave your business or churn. It helps to gain insights on issues that are important to your business, such as:

How many customers have churned?
Why did they churn?
When are they most likely to churn?
How has churn affected your business?
How to implement customer retention strategies?

This dashboard is simplified to show more fields in percentage.

This analysis helps the Retention Manager of a Telecoms agency understand customer behavior towards the use and abandon of the company's product so he/she can maintain healthy growth by constantly improving retention.

The first dashboard above analyzes the total number of customers who are with and have left the company.

Our focus however is on the second dashboard that has been filtered to show churned customers (those who have stopped doing business with the company), to determine who the are, what services they use, how, why and when they churn.

in order to do this effectively, I have to:

Define proper KPI's:

How many customers have churned?

Who are the customers that churn and when are they most likely to churn?

How has churn affected the business?

Create a dashboard for the retention manager reflecting the KPIs
Make recommendations by explaining my findings and suggestions as to what needs to be changed

According to the dashboard, the analysis shows that the overall count of customers current and churned are 7,043. The churned customers however are 1869 that is 25.54% of the total customers.

GENERAL CUSTOMER INFORMATION (where M= monthly, Y= yearly and 2Y= 2 yearly subscribers)

MALE: 3555

M: 1950 --> 54%

Y: 755 --> 21%

2Y: 850 -->23%

FEMALE: 3488

M: 1925 --> 55%

Y: 718 --> 20%

2Y: 845 --> 24%

CHURNED INFO.

MALE: 930

M: 813 --> 87%

Y: 91 --> 9%

2Y: 26 --> 3%

FEMALE: 939

M: 842 --> 89%

Y: 75 --> 7%

2Y: 22 --> 2%

Based on the above, monthly subscribers have the highest churn rate, or are more likely to churn, with the most of them being females with a margin of 2%.

Male 1 & 2 yearly subscribers are more likely to churn with by 2% and 1% respectively.

The total yearly charges of all churned customers amounts to a loss of $2.86m from the company.

My recommendation would be that an added benefit be included to the all plans with priority given to the monthly plan based on the high level of subscribers and churners.
Also, quarterly surveys should be taken to get feedback on clients perspectives regarding their services. This will provide insights on areas of service to improve and what clients are at risk

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