Customer Segmentation with K-Means Clustering

Programming Language: Python

Objective and context

Understand the target customers for the marketing team to plan a strategy

Context: You need to identify the most important shopping groups based on:

1. Income

2. Age

3. Mall shopping score

Objective Market Segmentation: Divide your mall target market into approachable groups.

Create subsets of a market based on demographic behavioural criteria to better understand the target for marketing activities.

Methodology

1. Perform exploratory data analysis

2. Use K-Means clustering algorithm to create our segments

3. Use summary statistics on the clusters

4. Visualise

Output

Visualisation of market segmentation: