Behavioral Analytics for Customer Retention: The Role of Engagement and Product Utilization in Banking

This study uses a behavioral analytics approach to examine customer retention in the banking industry, giving priority to product utilization and customer engagement over conventional financial metrics. By using exploratory data analysis to analyze a dataset of 10,000 customers, the study looks at engagement trends, churn distribution, and the impact of product adoption. To capture intricate retention dynamics, it introduces new retention KPIs: Relationship Strength Index, Product Depth Index, High-Balance Disengagement Rate, and Engagement Retention Ratio. An interactive Streamlit dashboard was created to show insights and pinpoint customer segments that pose a high risk. The findings show that while financial indicators by themselves are insufficient to predict loyalty, engagement and product use are important factors that influence retention. These results provide banks with practical ways to improve long-term relationships, maximize product offerings, and boost customer engagement.