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A CASE STUDY REPORT ON CHURN

ANALYSIS
Submitted to
Mr. Sanjay Rao
Founder, Axion connect

Presented by
Amit Kumar
 Way Forward.
2

A Business Scenario
Business Problem
Available Solution
Stepwise solution
Results & Findings

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 A Business Scenario
3

A leading telecom service provider has a customer base

of 1million users. In the cellular base, a customer can
choose pre-paid & post-paid services. In this competitive
telecom market customers have vast array of choices, the
cost of acquisition & rate of customer churn, both are
increasing at a rapid pace. In last three quarters operators
profitability has gone down & faced problem of customer
churn in one of the operators largest circle. The average
attrition rate for each quarters for the operator is 8% , 12%
& 15% respectively.

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 Business Problem..
4

Telecom service provider is loosing customer base & their

profitability has gone down.

The average churn rate is around 12%(Q1-8%, Q2-12%,

Q3-15%)

The acceptable return on their retention program is very

less & it has not targeted sharply to the customer churned
in second & third quarters

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 Available solution..
5

To address these problems, operator wants a robust

retention model/churn model that would help the telecom
operator to identify the propensity of churn & high-value
customers.

Need to use advance modeling techniques like neural

networks, decision trees & logistic regression to construct a
model that can score each customer for his probability of
churn over next quarter.

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 Stepwise solution..
6

Integration of the data like, billing information,

demographic information, service record information,
customer participation in retention program etc. in a single
file to capture all aspects of customer interaction.

Understanding of data dimension, functions & association

of data object with functions
Data object preparation
Constructing the model
Validating the model
Implementing it & track it

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 Results & Findings..
7

Model will help the operator with other CRM metrics to

build retention strategy.

Customer with high profitability with high propensity to

churn should be in the highest priority of retention and
should offer best incentive.

Customer with low profitability with high propensity to

churn should encouraged to increase the usage.

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THANK YOU
!