The Problem
Customer churn is one of the most expensive problems in subscription businesses — it's far cheaper to retain a customer than acquire a new one. This project used IBM's public Telco dataset to identify which customer characteristics and behaviors most strongly predict churn, surfacing actionable segments for a retention team to target.
Approach
Exploratory data analysis in pandas across customer attributes — after cleaning (nulls, categorical encoding, TotalCharges dtype fix), I used Matplotlib and Seaborn to visualize churn rates across contract type, tenure, payment method, and service bundle. The goal was a communicable story, not a black-box model.
Key Findings
- Month-to-month customers churned at 3× the rate of annual subscribers — by far the strongest predictor.
- Churn dropped sharply after 12 months of tenure; early-stage customers are the highest-priority retention target.
- Electronic check payers churned at nearly 2× the rate of auto-pay customers.
- Service bundles reduced churn; premium add-ons without a contract did not.
Impact
Clear prioritization framework: focus retention on month-to-month customers in year one paying by electronic check — 22% of the base, disproportionate share of churn.