Telecom Churn Rate Case Study Solution
Two Sub Sample for Churn Rate to Average Monthly Charges
By using the two sub samples, one for those who have churned (Churn = ‘Yes’) and one for the others (Churn = ‘No’), a confidence interval of 95% of the customer's average monthly charges based on churn status (one if churn is yes) is 73.3223 to 75.5603 for the customers and (one if churn is no) 60.4177 to 62.1125 for the customers. These sub samples lead to the conclusion that due to the higher monthly charges, the customers stopped using the company’s product and services, which increased the confidence to say that the highest monthly charges are the reason to stop buying and using the company’s product and services.
| Descriptive a | |||||
| Churn | Statistic | Std. Error | |||
| Monthly Charges | No | Mean | 61.2651 | .43226 | |
| 95% Confidence Interval for Mean | Lower Bound | 60.4177 | |||
| Upper Bound | 62.1125 | ||||
| 5% Trimmed Mean | 60.7626 | ||||
| Median | 64.4250 | ||||
| Variance | 966.753 | ||||
| Std. Deviation | 31.09265 | ||||
| Minimum | 18.25 | ||||
| Maximum | 118.75 | ||||
| Range | 100.50 | ||||
| Interquartile Range | 63.30 | ||||
| Skewness | -.025 | .034 | |||
| Kurtosis | -1.355 | .068 | |||
| Yes | Mean | 74.4413 | .57055 | ||
| 95% Confidence Interval for Mean | Lower Bound | 73.3223 | |||
| Upper Bound | 75.5603 | ||||
| 5% Trimmed Mean | 75.5549 | ||||
| Median | 79.6500 | ||||
| Variance | 608.414 | ||||
| Std. Deviation | 24.66605 | ||||
| Minimum | 18.85 | ||||
| Maximum | 118.35 | ||||
| Range | 99.50 | ||||
| Interquartile Range | 38.07 | ||||
| Skewness | -.729 | .057 | |||
| Kurtosis | -.362 | .113 | |||
| a. There are no valid cases for Monthly Charges when Churn = .000. Statistics cannot be computed for this level. | |||||
Two Sub Sample for Churn Rate to Tenure (Months)
By using the two sub samples, one for those who have churn (Churn = ‘Yes’) and another for the others (Churn = ‘No’), a confidence interval of 95% of the customer's tenure in months based on churn status (one if churn is yes) is 17.09 to 18.87 for the customers, and (another if churn is no)36.91 to 38.23 for the customers. These sub samples lead to the conclusion that tenure in months is a great cause to churn, which increases the confidence to say that the lowest tenure in months is the reason to stop buying and using the company’s product and services.
| Descriptive a | |||||
| Churn | Statistic | Std. Error | |||
| Tenure | No | Mean | 37.57 | .335 | |
| 95% Confidence Interval for Mean | Lower Bound | 36.91 | |||
| Upper Bound | 38.23 | ||||
| 5% Trimmed Mean | 37.69 | ||||
| Median | 38.00 | ||||
| Variance | 581.474 | ||||
| Std. Deviation | 24.114 | ||||
| Minimum | 0 | ||||
| Maximum | 72 | ||||
| Range | 72 | ||||
| Interquartile Range | 46 | ||||
| Skewness | -.032 | .034 | |||
| Kurtosis | -1.414 | .068 | |||
| Yes | Mean | 17.98 | .452 | ||
| 95% Confidence Interval for Mean | Lower Bound | 17.09 | |||
| Upper Bound | 18.87 | ||||
| 5% Trimmed Mean | 16.21 | ||||
| Median | 10.00 | ||||
| Variance | 381.465 | ||||
| Std. Deviation | 19.531 | ||||
| Minimum | 1 | ||||
| Maximum | 72 | ||||
| Range | 71 | ||||
| Interquartile Range | 27 | ||||
| Skewness | 1.149 | .057 | |||
| Kurtosis | .196 | .113 | |||
| a. There are no valid cases for Tenure when Churn = .000. Statistics cannot be computed for this level. | |||||
Recommendations to Reduce Churn Rate
It has been identified that the customers who churns (stopped buying the company’s product and services) have so many complaints related to the internet services of the company. A churned customer is not happy with the internet as well as the multiple line services of the company. A churned customer pays the highest monthly charges while the shortest tenure in months when he or she hadbeen a customer.
The things that should be done to reduce the customer churn rate are described below
- The company should collect the time to time feedback from the customers in order to resolve the issues being faced by the customers.
- The company should introduce the loyalty programs in which themarketing executives should design some marketing strategies in order to encourage the customers to continue shopping at or to use the services of the company associated with each program.
The company should offer discounts for monthly service charges.........................
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