Development of a Customer Retention Dashboard for PhoneNow Using Power BI
- Project Overview:
Designed and implemented a Customer Retention Dashboard in Power BI to help PhoneNow better understand and reduce customer churn.
- Key Features and Analysis:
- Churn Prediction and Analysis: Utilized customer data to identify at-risk customers and understand the main drivers of churn.
- Service Usage Insights: Analyzed which services (e.g., phone, internet, tech support) were most commonly linked to customer churn.
- Customer Segmentation for Targeted Retention: Segmented customers by demographics, contract type, and service usage to tailor retention strategies effectively.
- Comprehensive Account Monitoring: Tracked key metrics such as customer tenure, payment behaviors, and support interactions to pinpoint areas needing improvement.
- KPIs for Customer Churn Analysis Dashboard Churn Rate:
Value: 15% Description: Indicates that 15% of customers have left the service over the last month, signaling a need for improved retention strategies. Retention Rate:
Value: 85% Description: Shows that 85% of customers were retained over the same period, highlighting overall customer loyalty. Customer Lifetime Value (CLV):
Value: $1,200 Description: The average revenue expected from a customer throughout their relationship with the company, emphasizing the financial impact of retaining customers. Churn Prediction Score:
Value: 0.75 (on a scale of 0 to 1) Description: A high prediction score indicating a 75% likelihood that identified customers are at risk of churning, allowing proactive engagement. Service Usage Analysis:
Value: 40% of churned customers used only one service compared to 25% of retained customers. Description: Shows that single-service users are more likely to churn, suggesting an opportunity to promote bundled services. Average Tenure of Churned Customers:
Value: 8 months Description: On average, customers who churned stayed for 8 months, suggesting a critical period for retention efforts. Customer Satisfaction Score:
Value: 3.2 out of 5 Description: A satisfaction score of 3.2, which correlates with higher churn rates, indicating areas for service improvement. Churn by Demographics:
Value: 20% churn rate among customers aged 18-25. Description: Highlights that younger customers are churning at a higher rate, guiding targeted retention strategies for this age group. Monthly Recurring Revenue (MRR) Lost to Churn:
Value: $25,000 Description: Reflects the financial loss due to churned customers, emphasizing the importance of retention efforts. Support Interaction Frequency:
Value: 3 interactions per customer on average before churn. Description: Indicates that high support interaction frequency is linked to churn, suggesting the need to improve customer support processes.
- Project Impact:
Enabled PhoneNow to proactively address churn by identifying high-risk customers and implementing targeted retention efforts, leading to improved customer loyalty.