Q1. Based on the data above, the churn in BrowserStack is 29.9%. But this is of limited use.

Can you
calculate churn in a way that provides better insights? What is that insight?

Based on data available, the service provided by BrowserStack seems to be based on monthly
subscription. So, calculating overall churn of 29.9% for Jan-Mar time frame will not give the right insights
and we will need to calculate month on month churn%.

Since we have different subscription plans, we should see the churn on seat basis as well as user basis.
As churn in some of the higher subscription plans (5,10), will not have much impact on account level, but
on seat and user level will have higher impact (as well as Monetary Impact)

Seat level analysis considers that different accounts have different seat plans, and hence churn is
calculated basis weighted avg. of the same. (Churn of 10 seat plan account will lead to higher
contribution in churn compared with 1 seat plan account. Similarly, user level analysis, account for the
fact that different accounts have different number of users active.

For further insights in churn, we should see if any seating plan or region is leading to higher churn.

For analysis purpose a unique customer id is treated as a unique account.

Churn: An account is considered churned in n month if the account was active in n-1 month and closed
in n month. Similarly for seat and user based.

For representation purpose, we will be referring accounts who were retained or churned in n+1
month in n month itself (Churn for Feb is written in Jan month).

a) Overall Analysis
Churn %
Account Based Seat Based User Based
Jan Feb Mar Jan Feb Mar Jan Feb Mar
# Active Base 300 641 1,015 1,316 2,744 4,519 1,038 2,217 3,806
# Base Retained 240 511 845 1,087 2,307 3,909 951 2,033 3,454
Churn % 20% 20% 17% 17% 16% 13% 8% 8% 9%
# Active Base – Customer Base (Account/Seats/Users) active in the month (n).
# Base Retained - Base (Account/Sales/Users) who were active in the n month and next month (n+1)
Churn % - % Base who did not continue the account for the next month

 Account based MoM churn% varied b/w 17%-20% as compared to 29.9% calculated previously.
 Seat based and User based MoM Churn % is ~ 16% and 9% respectively.
 While we see a dip in churn in Mar for both account and seats, we see an increase in churn on
user level. This implies that relatively high user-based account churned.
b) Churn Based on Seat Plan
Churn % - Based on Seat Plans
Seat Plan - Based Churn % Accounts – Distribution
Jan Feb Mar Jan Feb Mar
1 Seat 38% 33% 29% 27% 28% 27%
2 Seats 9% 16% 11% 26% 26% 24%
5 Seats 13% 16% 13% 23% 23% 24%
10 Seats 19% 14% 13% 25% 24% 25%
  We can see that all seat plans have similar accounts distribution (~25%)
 Seat plan of 1 has a significantly higher churn %.
c) Region Based Churn
Churn % - Based on Region
Account - Based Seats - Based Users - Based
Churn Churn Churn
Jan Feb Mar Jan Feb Mar Jan Feb Mar
Churn %

Asia 42% 57% 54% 45% 40% 41% 26% 27% 28%
Europe 14% 11% 8% 4% 13% 9% 4% 6% 5%
North America 15% 12% 8% 14% 11% 8% 6% 5% 7%
Jan Feb Mar Jan Feb Mar Jan Feb Mar
Base Dist.

Asia 20% 20% 19% 17% 15% 16% 13% 13% 14%
%

Europe 23% 27% 30% 20% 28% 31% 23% 28% 31%
North America 57% 54% 51% 62% 57% 53% 64% 58% 56%
 Asia Region has significantly high amount of churn as compared to Europe and North America,
while it contributes lowest across three regions to the customer base.

Q2. Identify parameters that may be causing churn from the above dataset and explain why.

The parameters which are leading to higher churn are

a) Seat Plan: - Seat Plan of 1 has higher churn rate compared to other plans
b) Region based: - Asia Region is contributing significantly to churn
c) Seat Usage % - Lower seat usage leads to higher churn
d) Customer Behavior

Option a and b have been explained in detail as a part of question 1

c) Seat Usage % - is defined as a ratio of # users added to the plan / seats purchased.
Seat Usage%
Jan Feb Mar
Churned Accounts 38% 42% 58%
Retained Accounts 87% 88% 88%
For the seat usage analysis, we have removed 1 seat plan, as they have seat usage of 100% according to definition.

From the data we can clearly see that for (2,5,10 seat plan) usage is low for account who have tendency
to churn. This implies lower seat usage as one of the reasons for churn for (2,5,10) seating plans.

d) Customer Behavior
# Desktop # Mobile
# Users per # Logins per
# Accounts Sessions per Sessions per
Account User
Login Login
Churned Users
Jan 60 1.5 1.4 7.1 2.2
Feb 130 1.4 1.3 8.0 2.3
Mar 170 2.1 1.2 7.8 2.6
Retained Users
Jan 240 4.0 7.3 1.4 1.2
Feb 511 4.0 7.4 1.3 1.2
 Mar 845 4.1 7.5 1.4 1.2

March Month Customer Breakup - Plan Wise

# Accounts # Users / # Logins # Desktop Sessions # Mobile Sessions
Account per Users Per Users Per Users
Churned Users
1 Seat Plan 79 1.0 1.4 7.1 2.3
2 Seats Plan 28 1.4 1.3 8.1 2.3
5 Seats Plan 31 3.0 1.2 7.5 2.8
10 Seats Plan 32 4.4 1.1 8.4 2.9
Retained Users
1 Seat Plan 193 1.0 7.5 1.3 1.2
2 Seats Plan 218 2.0 7.5 1.4 1.2
5 Seats Plan 212 4.5 7.5 1.4 1.2
10 Seats Plan 222 8.5 7.5 1.3 1.2
Inferences we can build from the data:

1) For churned users, user /accounts tend to be on a lower end as compared with seat plan, which
indicate lower usage of plan and hence reason for churn.
2) Logins/user seems to be low for churned customers (~1.3) as compared to retained customers
(~7.4)
3) Churned users have significantly higher desktop and mobile sessions per login as compared with
retained users. (7.5 vs 1.4 for desktop session)

Above-mentioned points imply to two obvious customer behaviors:

a) Customer who purchases a lower seat plan (1 or 2 seat plan). He logins 1 or 2 times and does a
high number of tests (both desktop and mobile) per login. Once the tests are completed, the
customer churns. He repurchases a smaller seat plan when he needs to re-run testing, which can
be seen in the next segment from repurchase data.
b) Customer who purchased higher seat plan (5, 10 seat plan) also follow the above-mentioned
pattern, apart from the fact that they have not done any repurchases. This can be because they
have low no. of users as compared to seating plan they purchased, leading to low return for
their money.

Q3. What is your inference about repurchases using this dataset?

 # Repurchases are 12, which is immaterial to generate a meaningful insight

 Based on pattern on provided data on repurchases, we can say that lower seating plan have
higher tendency to repurchase, as there is no repurchase in 5, 10 seat plan categories.
Repurchased Month
Seat Plans Mar Apr May
1 4 4 1
2 3
5
10
Overall 4 7 1
Q4) Based on your understanding of BrowserStack customers and the dataset given above, what do
you think is the single most important reason that causes users to churn?

As per my understanding of the data, the single most important reason that causes customers to churn
is seating plans (subscription plan) design and maybe its pricing.
We have seen that seating plan of 1 had higher churn as compared to other seating plans.

Also, when we explored seat usage % further, we found that churned accounts tend to have low no. of
logins per user (50% to 100% less than retained accounts), but with higher number of sessions per login
(7.8 vs 1.4 for Desktop sessions). This indicated that they perform testing in one go and then churn out.
Also, accounts with higher subscription plans have low number of users as compared with the seating
plan they purchased. Both the above points tend to indicate a mismatch in customer requirement and
current subscription plan.

Also, seat plans may need to be redesigned based on geographies. For Asia and Europe, second usage
peaks at 4 seat plans as compared to 5 seat plans in North America. North America usage again peaks at
10 seat plans, not holding true for other geographies.

# Users vs # Accounts
200

150

100

50

0
0 2 4 6 8 10 12

Asia Europe North America