Bank Churn Analysis: Retaining Customers with Data-Driven Insights

 Introduction:

Customer churn, the rate at which customers stop doing business with a company, is a critical concern for any organization. In the financial industry, retaining customers is often more cost-effective than acquiring new ones. During my time at Vertace Consultants (September 2020 – January 2022), I had the opportunity to lead a project focused on tackling this challenge for Citi by analyzing bank churn. This project allowed me to apply my data analysis and visualization skills to provide actionable insights and inform customer retention strategies.

The Challenge: Understanding and Predicting Customer Churn

The primary goal of the project was to understand the factors that contribute to customer churn and develop strategies to mitigate it. This involved:

  • Identifying the key drivers of churn: What customer behaviors, demographics, or account activities are most strongly correlated with customers leaving?
  • Predicting which customers are most likely to churn: By identifying at-risk customers, proactive retention efforts can be focused on those who need them most.
  • Providing insights to inform retention strategies: What actions can the bank take to address the root causes of churn and improve customer satisfaction?

Our Approach: Leveraging Tableau for Data Visualization and Analysis

To effectively analyze the churn data and communicate our findings, we utilized Tableau, a powerful data visualization and business intelligence tool. Tableau enabled us to:

  • Create interactive dashboards: These dashboards provided a comprehensive view of customer churn, allowing stakeholders to explore churn trends, segment customers, and drill down into specific data points.
  • Visualize churn drivers: Through charts, graphs, and other visualizations, we highlighted the key factors influencing churn, making it easy for the bank to understand the underlying causes.
  • Identify at-risk customer segments: We used Tableau to segment customers based on their churn risk, enabling the bank to target specific groups with tailored retention strategies.


Lessons Learned:

This project reinforced the importance of:

  • Understanding the business problem: A clear understanding of the business objectives is crucial for framing the analysis and delivering relevant insights.
  • Data visualization for effective communication: Visualizations are essential for communicating complex data insights to stakeholders in a clear and concise manner.
  • Actionable insights: The ultimate goal of any analysis is to provide actionable recommendations that can drive positive change.

This experience provided me with valuable skills in data analysis, visualization, and problem-solving within the context of customer retention.

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