Small projects for research and learn
Customer Segmentation on actual transactions from UK retailer: data set on Kaggle
Customer Segmentation is
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the process of splitting a customer base into multiple groups of individuals that share a similarity in ways a product is or can be marketed to them such as gender, age, interests, demographics, economic status, geography, behavioral patterns, spending habits and much more.
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is one the most important applications of unsupervised learning.
Using clustering techniques, companies can identify the several segments of customers allowing them to target the potential user base. Companies use the clustering process to foresee or map customer segments with similar behavior to identify and target potential user base.
Algorithms to be used for segmentation:
- K-means clustering
- heirarchical clustering
- Partitioning method
- Fuzzy clustering
- Density-based clustering
- Model-based clustering