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Customer segmentation is a technique used by businesses to group customers based on common characteristics. This project performs customer segmentation using unsupervised machine learning techniques such as K-Means clustering and Hierarchical Clustering. The goal is to identify different customer groups based on purchasing behavior and demographics

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anupam134/customer-segmentation-analysis

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🎯 Customer Segmentation Analysis "Know your customers, grow your business!"

πŸ” What if you could group customers based on their spending habits and preferences? This project uses machine learning to cluster customers into meaningful segments, helping businesses make data-driven marketing decisions.

πŸ“Œ Why Customer Segmentation? βœ… Personalized marketing campaigns 🎯 βœ… Improved customer retention ❀️ βœ… Optimized product recommendations πŸ›οΈ βœ… Data-driven business decisions πŸ“Š

πŸš€ Tech Stack & Tools Tool Purpose 🐍 Python Programming Language πŸ“Š Pandas & NumPy Data Manipulation πŸ“‰ Matplotlib & Seaborn Data Visualization 🧠 Scikit-learn Machine Learning πŸ“‚ Dataset We use the Mall Customers Dataset, which includes: πŸ“Œ CustomerID – Unique customer identifier πŸ“Œ Gender – Male/Female πŸ“Œ Age – Customer's age πŸ“Œ Annual Income (k$) – Income in thousands πŸ“Œ Spending Score (1-100) – Shopping engagement score

πŸ”Ž How It Works ✨ 1. Explore the Data πŸ“Š

Check for missing values & outliers Visualize spending trends ✨ 2. Scale & Prepare the Data πŸ”„

Normalize numerical features Transform categorical data ✨ 3. Apply Clustering Techniques πŸ€– βœ” K-Means Clustering – Fast & efficient πŸ”₯ βœ” Hierarchical Clustering – Dendrogram-based grouping 🌲 βœ” DBSCAN – Density-based clustering πŸ”

✨ 4. Evaluate & Visualize πŸ–ΌοΈ

Elbow Method & Silhouette Score to choose the best clusters Scatter plots & pair plots to visualize segmentation πŸ“Š Results πŸ‘₯ Customers segmented into X groups based on spending behavior! 🎯 Found high spenders, budget shoppers, and potential VIP customers!

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Customer segmentation is a technique used by businesses to group customers based on common characteristics. This project performs customer segmentation using unsupervised machine learning techniques such as K-Means clustering and Hierarchical Clustering. The goal is to identify different customer groups based on purchasing behavior and demographics

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