Livedocs
Churn Analysis
This notebook analyzes customer churn using a dataset of 8,000 customers. It investigates churn drivers across various dimensions, including subscription type, usage patterns, age demographics, and skip behavior. The analysis reveals surprising insights such as lower churn rates for free users compared to family plan users, a "usage paradox" where medium usage customers churn more, and unexpected age demographics in churn.

What We Found in Our Data

Our dataset contains 8,000 Spotify customers with the following key characteristics:

📊 Overall Churn Rate: 25.89% - This means about 1 in 4 customers stopped using Spotify

👥 Customer Demographics:

  • Average age: 38 years old
  • Gender split: Fairly balanced across Female, Male, and Other
  • Geographic spread: Multiple countries represented

💳 Subscription Types:

  • Free, Student, Premium, and Family plans
  • Family plans have the highest churn rate (27.52%)
  • Free plans surprisingly have the lowest churn rate (24.93%)

📱 Device Usage:

  • Mobile, Desktop, and Web users
  • Mobile users churn slightly more than others (26.89%)

Now let's dive deeper with visualizations to understand what drives customer churn!

spotify_churn_d...
subscription_typetotal_customerschurned_customersretained_customerschurn_rate_percent
Family
1908
525
1383
27.52
Student
1959
513
1446
26.19
Premium
2115
530
1585
25.06
Free
2018
503
1515
24.93
4 Rows
dataframe_6
spotify_churn_d...
usage_categorytotal_customerschurn_rate_percentavg_listening_timeavg_songs_per_dayavg_skip_rate
Low Usage (< 50 hrs)
1108
24.64
29.6
51.1
0.307
Medium Usage (50-100 hrs)
1400
27.07
74.1
49.3
0.296
High Usage (100-150 hrs)
1355
26.57
123.5
50.7
0.305
Very High Usage (150+ hrs)
4137
25.6
224.5
49.9
0.298
4 Rows
dataframe_7
spotify_churn_d...
age_grouptotal_customerschurn_rate_percentavg_ageavg_listening_time
Young (18-24)
1667
24.96
20
158.1
Young Adult (25-34)
1728
26.85
29.6
151.4
Middle-aged (35-44)
1815
25.34
39.5
153.7
Mature (45-54)
1877
25.89
49.5
153.2
Senior (55+)
913
26.83
57
154.4
5 Rows
dataframe_8
spotify_churn_d...
skip_categorytotal_customerschurn_rate_percentavg_skip_rateavg_listening_timeavg_songs_per_day
Low Skip Rate (< 20%)
2598
25.33
0.097
155
49.9
Medium Skip Rate (20-40%)
2670
25.36
0.294
155.9
50.5
High Skip Rate (40-60%)
2660
26.99
0.496
151.4
50.1
Very High Skip Rate (60%+)
72
25
0.6
152.6
49
4 Rows
dataframe_9
spotify_churn_d...
offline_listeningsubscription_typetotal_customerschurn_rate_percentavg_listening_timeavg_ads_per_week
0
Free
2018
24.93
155
27.5
1
Family
1908
27.52
151
0
1
Student
1959
26.19
154.5
0
1
Premium
2115
25.06
155.5
0
4 Rows

Key Insights: What Drives Customer Churn? 🔍

After analyzing 8,000 Spotify customers, here are the most important findings:

🚨 Surprising Finding: Free Users Are Most Loyal!

  • Free users have the lowest churn rate at 24.93%
  • Family plan users have the highest churn rate at 27.52%
  • This suggests that people on free plans are satisfied with the basic service
  • Family plan complexity or pricing may be causing dissatisfaction

📊 Usage Patterns Don't Follow Expected Trends

  • Medium usage customers (50-100 hours) actually churn more than low usage customers
  • Very high usage customers (150+ hours) have relatively low churn rates
  • This "usage paradox" suggests engagement alone doesn't prevent churn

👥 Age Demographics Show Surprising Patterns

  • Young Adults (25-34) and Seniors (55+) have the highest churn rates (~26.8%)
  • Youngest users (18-24) are surprisingly loyal with only 24.96% churn
  • Middle-aged users show consistent, moderate churn rates

🎵 Skip Behavior Is a Warning Sign

  • Customers with high skip rates (40-60%) show elevated churn at 26.99%
  • However, very high skip rates (60%+) don't correlate with higher churn
  • This suggests moderate skipping indicates dissatisfaction, while extreme skipping might indicate different usage patterns

💡 The Offline Listening Paradox

  • Customers with offline listening access (Premium, Student, Family) actually churn more than Free users
  • This challenges the assumption that premium features always improve retention
  • May indicate that premium users have higher expectations