Assessment
Assessment
First of all, I would like to thank you for giving me a chance to challenge
myself and prove and show my analysis skills to you and your company. It
was absolutely a privilege for me.
My file contains 2 dashboards: 1 is for an overview of this telecom company,
and the second one would be about the churn rate and churned customers of
this company.
To begin my presentation, I would like to talk briefly about a piece of the
telecom industry in the Western U.S., where is the company we will analyze
later based on.
Background of Telecom in West US
o According to Grand View Research, the U.S. telecom services
market size was estimated at USD 468.08 billion in 2023 and is
expected to grow at a CAGR of 6.6% from 2024 to 2030. Hence, there
is still a lot of potential size for a telecom company to grow and expand
in the next 6 years.
Body
Analysis
o As a data analyst, when I received the assessment, I tried to find out
which dataset was suitable and insightful to analyze.
o After that, I began with the step of data understanding and cleaning
I tried to identify and handle missing values in the dataset (e.g.,
remove all blank cells and null values) because I knew that
missing data could impact analysis accuracy. Besides, I need to
ensure all columns are of the correct data type (e.g., numerical,
categorical).
o Then I used descriptive analysis to gain some basic insights and
understand more about this company:
Findings
o Findings:
o Dashboard 1: Overall
Key Metrics:
Number of Customers: 7.043K
Total Revenue: $21.37M
Customer Lifetime Value: $2.06K
There are some interesting insights after analysis and visualization I can gain from:
Most users use phone service and internet service. Other
service packages such as ... only fluctuate from about 20-40%
of all number of users. However, for the unlimited data package,
there was about 67% of users subscribed to use this monthly on
average. Especially for the age group of 65 and over, the rate of
using unlimited data packages accounts for more than 80%. As
for students and workers, it may be because studying and
working take up most of the day and offices have wifi, so the
demand to use unlimited data packages is below average.
This might lead to the average monthly charge of the age group
over 65 being higher than other age groups. The age group of
65-75 and 75+ got the outstanding average monthly charge,
which was around 30% higher than that of other age groups.
Next, I would like to show you the proportion of customers by
the type of contract. This is one of the most important factors
that influence the churn rate. While 51% of users register month-
to-month contracts occupied more than 45% of the total churn
rate, the 2-year-contract customers account for only 2.55%
churn rate
Besides, there are some charts to illustrate the amount of
revenue, customer distribution, and branding coverage
depending on location metrics
Dashboard 2: Churned Customer
At first glance, we can see there are 1869 customers churned
and it occupied 26.54% of all users. There is no big difference
between genders, the number of female churned customers is
939 while male is 930. So we can conclude that gender doesn't
matter. Now I want to focus on the offer which is the last
marketing offer that the customer accepted. There will be 2
scenarios, the first is that the company didn't give them any
offers at all, and the other is the offers were not interesting
enough to draw their attention and hold them back.
Secondly, the major reason that accounts for 45% of the churn
rate is because of competitors. It means the competitors had
better devices, better offers, or they are doing something better
than us which we can't proactively adjust to adapt to customer
satisfaction. Therefore we should look at other reasons. We can
see more than 30% of users were not happy with our products,
devices, and services. This is what we should concentrate on to
decrease the churned customer.
Finally, along with trying to retain customers, the company
should also expand its branding coverage in the area because
as we can see the total coverage in the western U.S. is just
about 0.02%
Conclusion and Recommendation
Conclusion
o Contract type also plays a crucial role in churn rates; month-to-month
contracts show a significantly higher churn rate than longer-term
contracts, indicating that customer retention is stronger with longer
commitments.
o Churn analysis further highlights that gender does not influence churn
rates
o The absence or inadequacy of marketing offers and strong competition
account for a substantial portion of customer churn
o Competitors offering better devices or services, as well as customer
dissatisfaction with products and services, are primary reasons for the
high churn rate
Recommendation
o Enhance Service Offerings: To reduce churn, especially among
users who are dissatisfied or attracted by competitors, the company
should improve its products and services. Investing in better devices,
more appealing offers, and higher service quality could help retain
customers.
o Targeted Marketing Strategies: Focus marketing efforts on
customers with month-to-month contracts, offering incentives for
longer-term commitments. This could reduce the churn rate associated
with short-term contracts.
o Expand Branding Coverage: Increase branding and marketing efforts
in underrepresented areas, particularly in the western U.S., to improve
market presence and attract new customers.
o Personalize Offers for Older Age Groups: Given that the age group
65 and over prefers unlimited data packages and has higher average
monthly charges, tailored offers that meet their specific needs could
enhance customer satisfaction and loyalty.
o Competitor Analysis: Conduct regular competitor analysis to
understand their strengths and adjust strategies accordingly. This could
include competitive pricing, better device options, or unique service
features to match or exceed what competitors offer.