Customer Churn Analysis

About Project

The Customer Churn Analysis project examined a dataset of nearly 200,000 customer records containing demographic details, transaction histories, and behavioral patterns. The main objective was to gain insights into customer churn and return behaviors in order to support data-driven retention strategies and long-term business growth. By analyzing such a large and diverse dataset, the project aimed to uncover patterns that explained why customers leave, what drives them to return, and how businesses can optimize customer engagement.

The process began with data preparation in Excel, where missing values were addressed, duplicates removed, and derived fields created to improve analytical accuracy. This clean dataset enabled a robust Exploratory Data Analysis (EDA), which revealed trends across customer demographics, purchasing behaviors, churn rates, and product return activities. These insights were then translated into interactive Power BI dashboards, offering stakeholders a dynamic way to visualize churn patterns, segment customers, and explore return behaviors in real time.

To measure performance and guide strategic decisions, the project established Key Performance Indicators (KPIs) such as churn rate, return rate, average purchase value, and Customer Lifetime Value (CLV). Together, these metrics provided actionable benchmarks to evaluate loyalty, track retention efforts, and identify growth opportunities. By combining Excel for preparation and Power BI for visualization, the project delivered a comprehensive framework that not only highlighted the risks of customer attrition but also empowered the business to develop targeted initiatives that maximize customer value and long-term success.

Summary

The analysis revealed that while overall sales were strong, profitability was inconsistent due to regional underperformance, high product returns, and ineffective discounting. Technology products delivered the highest profit margins, while certain office supplies and furniture categories eroded profitability. Customer segmentation showed mid-frequency buyers as an untapped opportunity for loyalty programs. Additionally, shipping delays and negative profits in some cities highlighted operational inefficiencies.

Overall, the study translated raw data into strategic insights—showing how smarter discounting, targeted marketing, improved shipping, and customer loyalty initiatives can significantly improve business performance.

Recommendations

  • Regional Growth: Focus marketing and sales strategies in South & Central to close performance gaps (+15–20% growth).

  • Discount Optimization: Limit heavy discounting in Office Supplies & Furniture to protect profit margins (+10–12% profit).

  • Customer Retention: Launch loyalty programs for mid-frequency buyers to boost Customer Lifetime Value (+12–15%).

  • Returns Management: Improve product quality and support, particularly in Office Supplies, to reduce return costs (-10–15%).

  • Shipping Improvements: Speed up Standard Class shipping and promote First Class to enhance customer satisfaction (+5–7%).

  • City-Level Audits: Review underperforming cities (e.g., Abilene, Beaumont) and replicate successful strategies from top-performing locations like NYC (+10% margin recovery).