Customer Segmentation Machine Learning using K-Means Clustering Algorithm:
Customer segmentation is the process of dividing customers into groups based on common characteristics so companies can market to each group effectively and appropriately. In business-to-consumer marketing, companies often segment customers according to demographics that include: Age,Gender,Marital status,Location (urban, suburban, rural),Life stage (single, married, divorced, empty-nester, retired, etc.),Income Segmentation allows marketers to better tailor their marketing efforts to various audience subsets. Cotext: This data set is created only for the learning purpose of the customer segmentation concepts , also known as market basket analysis . I will demonstrate this by using unsupervised ML technique (KMeans Clustering Algorithm) in the simplest form.
Content: You are owing a supermarket mall and through membership cards , you have some basic data about your customers like Customer ID, age, gender, annual income and spending score. Spending Score is something you assign to the customer based on your defined parameters like customer behavior and purchasing data.