Imagine that you have a customer dataset, and you need to apply customer segmentation on this historical data. Customer segmentation is the practice of partitioning a customer base into groups of individuals that have similar characteristics. It is a significant strategy as a business can target these specific groups of customers and effectively allocate marketing resources. For example, one group might contain customers who are high-profit and low-risk, that is, more likely to purchase products, or subscribe for a service. A business task is to retaining those customers. Another group might include customers from non-profit organizations.
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Applied Clustering algorithm(K-means) for Customer Segmentation, which is partitioning a customer base into groups of individuals with similar characteristics.
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