veeanalyst/telco-churn-analysis

Customer churn analysis for ABC Communications — AnalystLab Africa Week 1 # Telco Customer Churn Analysis — ABC Communications Ltd. **AnalystLab Africa — Week 1 Data Analytics Project** ## Business Problem ABC Communications, a telecom provider, is losing a significant share of its customer base to churn. This project investigates *who* is churning, *why*, and what the company can do about it — using the Telco Customer Churn dataset (7,043 customers, 21 attributes). Customer churn is costly beyond the lost sale: acquisition costs (marketing, onboarding) are only recovered over a customer's lifetime, so early churn means that investment is never fully recouped — making retention significantly cheaper than reacquisition. ## Key Findings | Driver | Finding | |---|---| | **Contract type** | Month-to-month customers churn at 43%, vs. 11% (one-year) and 3% (two-year) | | **Payment method** | Electronic check churns at 45% — more than double any other payment method | | **Online security** | Customers without security add-ons churn at 42%, vs. 15% with it | | **Senior citizens** | Churn at 42%, nearly double non-seniors (24%) | | **Tenure** | Strongest numeric predictor of churn (correlation: -0.35); churned customers have a median tenure of 10 months vs. 38 months for retained customers | Overall baseline churn rate: **27%** (1,869 of 7,043 customers). ## Repository Structure ``` ├── data/ Raw dataset (CSV) ├── analysis/ Excel workbook — data cleaning, pivot tables, 9 charts, correlation heatmap ├── report/ Full business report (Word) — business case, analysis, insights, recommendations ├── charts/ Individual chart images (PNG) └── presentation/ Summary slide deck ``` ## Methodology 1. **Data inspection** — checked row/column counts, data types, missing values (found 11 blank `TotalCharges` values tied to new customers, corrected to 0), and duplicates. 2. **Exploratory analysis** — built 9 visualizations (3 bar charts, 2 pie charts, 2 histograms, 1 box plot, 1 correlation heatmap) to examine churn across contr …