Exploratory data analysis and business insights on the Telco Customer Churn dataset — AnalystLab Africa Data Analytics Internship, Week 5
# Telco Customer Churn Analysis
Business analytics case study completed as part of the AnalystLab Africa Data Analytics Internship (Batch B, Week 5).
## Project Overview
This project analyzes the Telco Customer Churn dataset to answer a core business question: why are customers leaving, and which factors contribute most to churn? The goal was to move beyond simple description of the data and produce insights and recommendations a business manager could act on.
## Dataset
- Source: Telco Customer Churn dataset (Kaggle)
- Size: 7,043 customer records, 21 columns (7,032 after cleaning)
- Target variable: Churn (Yes/No)
## Tools Used
- Python (Pandas, Matplotlib, Seaborn) — data cleaning, exploratory analysis, visualization
- Google Colab — notebook environment
- Microsoft Word — case study report
- PowerPoint — business presentation
## Process
1. Data cleaning — identified and resolved 11 hidden missing values in TotalCharges
2. Exploratory data analysis — dataset structure, summary statistics, churn baseline
3. Driver analysis — churn rate broken down by contract type, tenure, internet service, and payment method
4. Correlation analysis — quantified relationships between numeric variables and churn
5. Business insights and recommendations
## Key Findings
| Driver | Finding |
|---|---|
| Contract Type | Month-to-month customers churn at 42.7%, vs. 2.8% for two-year contracts (~15x gap) |
| Tenure | Churn falls from 47.7% in year one to 9.5% by year four-to-six |
| Monthly Charges | Churners pay a noticeably higher median monthly charge |
| Internet Service | Fiber optic customers churn at 41.9%, more than double the DSL rate |
| Payment Method | Electronic check users churn at 45.3%, ~3x any automatic payment method |
## Recommendations
1. Launch a first-year retention program targeting the highest-risk window
2. Incentivize upgrades from month-to-month to longer contracts
3. Investigate fiber optic satisfaction (price, reliability, or support)
4. Encourag …