PYTHON · CUSTOMER ANALYTICS

Customer Churn Analysis with Python

Exploring customer characteristics, engagement signals, and feature relationships through Python, pandas, Seaborn, Matplotlib, and scikit-learn.

Python customer churn correlation heatmap
Python customer churn correlation heatmap

THE QUESTION

What patterns are associated with customer exit?

The notebook examines the relationship between the Exited target and customer attributes such as age, balance, tenure, activity, and product count. The aim is to identify useful questions for retention analysis and prepare features for further modelling.

The supplied screenshots document exploratory analysis and categorical preparation. They do not show an overall churn rate, a trained model evaluation, or an achieved retention uplift.

CORRELATION ANALYSIS

Find signals before drawing conclusions.

A pandas correlation matrix is visualised with an annotated Seaborn heatmap. RowNumber and CustomerId are excluded from this view so identifier fields do not distract from the feature relationships.

Age and exit: 0.29

The displayed positive correlation suggests a relationship worth examining by customer segment.

Activity and exit: −0.16

Active membership has a negative association with the exit target in this sample.

Balance and exit: 0.12

The weaker positive relationship provides another exploratory input, not a standalone churn rule.

Python notebook customer churn correlation heatmap
Notebook evidence: annotated feature correlations. Correlation indicates association, not causation.

Balance and CreditUtilization show a correlation of 0.97. This strong overlap calls for checking how the engineered feature was defined and whether redundant variables should be handled during model development.

DATA PREPARATION

Inspect categories before encoding.

The workflow reviews Geography, Gender, and CreditScoreGroup with value_counts(), then applies LabelEncoder to the selected columns.

Geography

France: 5,014
Germany: 2,509
Spain: 2,477

Gender

Male: 5,457
Female: 4,543

Credit-score groups

Low: 5,693
Medium: 2,428
High: 1,879

Customer churn notebook categorical counts and LabelEncoder preparation
Notebook evidence: category distribution checks and encoding code.

LEARNING & NEXT STEPS

A foundation for retention questions.

Quantify churn

Calculate the Exited share from the source data before reporting an overall churn percentage.

Validate the model

Review encoding choices, split data before fitting transformations, and evaluate out-of-sample precision, recall, and discrimination.

Connect analysis to action

Use validated findings to frame retention experiments and measure their impact on actual customer outcomes.

This project demonstrates a Python exploration and preparation workflow. It does not claim that a predictive model was deployed or that churn was reduced.

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