1. Axion Connenct 1
A CASE STUDY REPORT ON CHURN
ANALYSIS
Submitted to
Mr. Sanjay Rao
Founder, Axion connect
Presented by
Amit Kumar
2. Way Forward….
2
A Business Scenario
Business Problem
Available Solution
Stepwise solution
Results & Findings
3. 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 operator’s profitability has gone down & faced problem of
customer churn in one of the operator’s largest circle. The average
attrition rate for each quarters for the operator is 8% , 12% & 15%
respectively.
Axion Connenct
4. 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
Axion Connenct
5. 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.
Axion Connenct
6. 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
Axion Connenct
7. 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.
Axion Connenct
