In industry 4.0, telecommunications is essential to people. People use telecommunications to communicate with others who are far away, get information faster, and as a means of entertainment. This time, the author was asked to analyze customer churn data at a telecommunications company.
The dataset is taken from Kaggle.
Paperless Billing based on Gender
From first figure, it can be seen that the percentage of the female who uses paperless billing is significantly low than those who use regular billing. The female who uses paperless billing is 26.94%, while the female who uses regular billing is 73.06%. In addition, in the second figure, it can be seen that males also use more regular billing than paperless billing. The percentage of males who use paperless billing is only 26.01%, while males who use regular billing are 73.90%.
From both figures, it can be concluded that both females and males prefer the use of ordinary bills (paper bills) rather than paperless billing. This can be assumed because the bill in letters/papers makes it easier for telecommunication service users to pay the service bills that users have used. In addition, sometimes paperless billing also makes the user difficult to understand the bill details because the form is in digital format. Moreover, paperless bills (online bills) also make the user remember the username and password given by the telecommunications service provider.
Customer that use Internet Service and Phone Service
Overall, it can be seen that almost all users, whether using internet service or not using internet service, use the phone service. However, it can be seen that the number of users who use fibre optic internet service and use phone service more than users who use DSL type internet service and who do not use internet service (1536 customers). Moreover, DSL internet service users rank second using the most phone service (as many as 1230 people), while the number of DSL internet service users who do not use phone service is only 441 people. Furthermore, it can be seen that users who do not use the internet service but use the phone service numbered 1192 people.
From the figure, it can be concluded that most telecommunication service users of this company also use phone service in their homes. However, it is not necessarily that the customers who use phone service also use internet service. This might be because the customer found that the price offered by the telecommunication company is sufficient (such as price discounts to customers in the form of internet and telephone service packages or promos that make customers interested in installing both services). In addition, the quality or rating of the telecommunications company might also cause people to prefer to use both services.
In addition, telecommunication companies can start the marketing campaign by offering unique promos or packages. The promos can be in the form of discounts, special offers or specific packages to customers who use one of these services to increase the number of users of both services and create more benefits. In addition, promos on social media can also attract prospective customers to install internet service and phone service in their homes.
Customer Churn based on Additional Services
From figure above, it can be seen that telecommunication services users who use internet service more likely to choose DSL type rather than fiber optic type and the user that does not use internet service. From this figure, it can be seen that DSL type users ranked first, with 1671 customers. However, the total number of customers who use the fiber optic type is only 1536 people, and customers who do not use the internet service are only 1192 customers.
Figure above explains the total customers who use the internet to stream movies and streaming TV. In general, it can be seen that internet users who like streaming movies also like streaming TV (as many as 1171 customers). Similarly, internet users who do not like streaming movies also do not like streaming TV (as many as 1118 customers). However, it can be seen that users who do not use the internet service more than users who use the internet service (as many as 1192 customers).
From both figures, it can be concluded that the company can start to market or offering internet services packages with entertainment offers in it (such as streaming tv or streaming movies) or regular internet service packages for browsing purposes only. In addition, to increase the number of internet users with fiber optic type, the company can start marketing the benefits of fiber optic internet in social media, such as faster internet, or can fullfill streaming needs for youngsters. This is to attract prospective customers, especially youngsters, to install fiber optic in their homes. Furthermore, the company can offer fiber optic installation with access to movies or tv programs that are trending in the community (such as Disney+, HBO Max, or Netflix) at an affordable price.
Customer Churn based on Payment Method & Charges
Overall, it can be seen from first figure that customers prefer to use electronic checks and mailed checks rather than automated methods. In addition, users who use electronic checks and mailed check prefer to make payments on a month-to-month basis. Meanwhile, users who use automated methods, such as bank transfers and credit cards, prefer to make payments on a two-year basis. It can be seen that the number of users who use electronic checks with month-to-month payments is in the first position, which is 723 people. In comparison, the number of users for automatic methods with payments on a two-year basis has almost the same amount (448 for bank transfers and 493 for credit cards).
Furthermore, in the second figure, it explains the total overall cost and monthly costs to be paid by the customer. The total price to be paid on a two-year basis is more expensive than the month-to-month basis from the figures. While the monthly cost incurred by the average customer is almost the same for each contract type (the amount to be paid is about 60,000)
From both figures, it can be concluded that most users prefer the automatic method for long-term use because the automatic method offers instalments so that users can pay it to step by step. While users prefer the electronic check method or email check for short-term use because of the ease for users to terminate the services.
Furthermore, due to the large number of users who prefer month-to-month contracts over other contracts, the company can increase the loyalty of its customers by holding discounts for customers who choose their products for 3–4 months. This is so that the number of “two-year” contracts can increase and because the price of “two-year” is relatively high so that it can increase profits for the company. In addition, with the offer as mentioned in the previous section, customers can also become more loyal in using products from telecommunication companies offer.
Data visualization using Tableau can be seen here.
