CUSTOMER CHURN ANALYSIS - CHART RECOMMENDATIONS & INSIGHTS

DATA QUALITY REPORT

Dataset: 200 customer records with complete data

• No missing values across all variables
• Minimal outliers: 1 age outlier (0.5%), 5 purchase frequency outliers (2.5%)
• Balanced churn distribution: 59.5% retained, 40.5% churned
• Data quality: Excellent - ready for analysis without preprocessing

RECOMMENDED CHART #1: Comparative Box Plots ⭐ BEST CHOICE

Why it works for your marketing team:
Box plots simultaneously show the distribution, central tendency, and spread of each metric while making the difference between churned and retained customers visually obvious.

What it reveals:

• Purchase Frequency: MASSIVE difference - churned customers averaged 3.7 transactions/month vs 6.5 for retained
• Average Order Value: SIGNIFICANT difference - churned customers spent $54.48/order vs $80.09 for retained
• Age: NO meaningful difference - churn is age-agnostic

Best practices applied:

• Color-coded: Blue for retained (positive), red for churned (warning)
• Statistical significance annotated on each panel
• Mean lines (dashed green) and median lines (solid black) both shown

RECOMMENDED CHART #2: Two-Factor Scatter Plots with Quadrants

Why it works:
Reveals the COMBINED effect of two variables, identifying high-risk customer segments.

What it reveals:

• “Champions” (high frequency, high value) - mostly retained
• “Churn Zone” (low frequency, low value) - heavily churned
• Pattern shows frequency matters MORE than order value

CHARTS TO AVOID ❌

Pie charts for metric comparison - Cannot compare retained vs churned on multiple metrics
Radar/spider charts - Only 3 variables makes this sparse and hard to read
3D visualizations - Adds visual clutter without information value

KEY FINDINGS

PRIMARY: Purchase Frequency is the Dominant Churn Driver

• Churned customers: 3.7 transactions/month
• Retained customers: 6.5 transactions/month
• Difference: -43.5% (statistically significant)

Action: Flag any customer who drops below 4 purchases/month for intervention

SECONDARY: Average Order Value Matters, But Less

• Churned: $54.48 average order
• Retained: $80.09 average order
• Difference: -32.0%

TERTIARY: Age is NOT a Factor

• No statistical difference between groups
• DO NOT waste budget on age-based segmentation for retention

HIGH-RISK CUSTOMER PROFILE

Churn Risk Score:

• Purchase frequency < 4/month: +50 points
• Average order value < $60: +30 points
• Both conditions: +20 bonus points

Risk levels: 0-30 (Low), 50-60 (Medium), 80-100 (High - immediate intervention)