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🧾 Mall Customer Segmentation using K-Means Clustering 🎯 Objective

To group mall customers into distinct segments based on:

Annual Income (k$)

Spending Score (1–100) so businesses can target each segment with personalized marketing.

Below are the key visual insights from the dataset, represented using six compact side-by-side figures.

📸 Visual Summary of Findings

🔍 What the Results Reveal

Gender Distribution shows a slightly larger female customer base (56%) compared to male (44%).

Boxplots reflect income variance across clusters—clear separation of low, mid, and high-income groups.

Spending Score vs Annual Income scatter plot reveals distinct clusters of customer behavior.

Elbow Method confirms the optimal number of clusters as k = 5.

Histograms show underlying distribution of age, income, and spending diversity in the dataset.

🧠 Algorithm Used

K-Means Clustering (Unsupervised Learning)

Finds natural groupings in data without predefined labels.

Optimal number of clusters determined using Elbow Method (k = 5).

⚙️ Tech Stack

Category Tools Language Python Libraries pandas, numpy, matplotlib, seaborn, scikit-learn Algorithm K-Means Clustering 📊 Steps Involved

Data Collection → Mall_Customers.csv

Exploratory Data Analysis (EDA) → Age, Income, Spending distributions

Feature Selection → Annual Income & Spending Score

Elbow Method → Found optimal k = 5

Clustering → Applied K-Means algorithm

Visualization → Scatter plots & boxplots of clusters

🧩 Cluster Insights

Cluster Income Level Spending Behavior Strategy 0 Low High Budget offers 1 Medium Medium Retain via loyalty programs 2 High High VIP / Premium marketing 3 Low Low Low engagement 4 High Low Upselling & awareness campaigns 📈 Results

5 unique customer segments discovered.

Clear distinction between income and spending patterns.

Useful for targeted marketing and customer retention.

🧑‍💻 Project By

📧 puneethraaaj@gmail.com

🌐 github.com/pun33th45

About

Spending Score using K-Means Clustering. This helps businesses identify different customer groups and create targeted marketing strategies. Tech Stack: Python, Pandas, NumPy, Matplotlib, Seaborn, Scikit-learn Key Steps: Data Preprocessing · Elbow Method · K-Means Clustering · Visualization · Insights

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