Key Insights
Critical findings from the customer churn analysis
Age & Geography = Highest Risk
Older customers and those residing in Germany show significantly higher churn probability. German customers are more than twice as likely to leave compared to French customers.
Activity Status is the Strongest Lever
Customer activity status has the most dramatic impact on churn risk. Becoming inactive raises risk sharply, while returning to active status significantly lowers it.
Ignore These Factors
Tenure, credit card ownership, and estimated salary show no meaningful correlation with churn. Focus resources on the statistically significant factors instead.
Individual Risk Scores Available
Every customer receives a probability score between 0-1. Managers can rank customers by risk and focus on the top 10-20% most likely to leave.
High Balance ≠ Low Risk
Counterintuitively, customers with higher balances show increased churn risk. These valuable customers need special attention and personalized retention strategies.
Product Holdings Protect Retention
Customers with more banking products are less likely to leave. Adding products lowers risk, while losing products raises it significantly.
Strategic Recommendations
Actionable strategies for relationship managers to reduce customer churn
Focus on 7 Critical Factors
Prioritize age, activity status, Germany residence, gender, balance, credit score, and number of products. These statistically significant factors drive retention success.
Implement Tiered Strategy
High-risk customers (30%+) get direct outreach. Moderate-risk (15-30%) receive targeted offers. Low-risk maintain regular communication.
Keep Customers Active
Monitor activity status closely and re-engage inactive customers immediately. This single factor has the most dramatic impact on retention probability.
Cross-Sell Additional Products
Encourage customers to add more banking products. Each additional product significantly reduces churn risk and increases customer stickiness.
Special Attention for German Customers
German customers require enhanced relationship management due to their higher baseline churn risk. Implement region-specific retention programs.
Personalize High-Balance Customer Care
High-balance customers paradoxically show higher churn risk. Provide tailored conversations highlighting their value and financial goal support.