π― Customer Segmentation Analysis "Know your customers, grow your business!"
π 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.
π Why Customer Segmentation? β Personalized marketing campaigns π― β Improved customer retention β€οΈ β Optimized product recommendations ποΈ β Data-driven business decisions π
π Tech Stack & Tools Tool Purpose π Python Programming Language π Pandas & NumPy Data Manipulation π Matplotlib & Seaborn Data Visualization π§ Scikit-learn Machine Learning π Dataset We use the Mall Customers Dataset, which includes: π CustomerID β Unique customer identifier π Gender β Male/Female π Age β Customer's age π Annual Income (k$) β Income in thousands π Spending Score (1-100) β Shopping engagement score
π How It Works β¨ 1. Explore the Data π
Check for missing values & outliers Visualize spending trends β¨ 2. Scale & Prepare the Data π
Normalize numerical features Transform categorical data β¨ 3. Apply Clustering Techniques π€ β K-Means Clustering β Fast & efficient π₯ β Hierarchical Clustering β Dendrogram-based grouping π² β DBSCAN β Density-based clustering π
β¨ 4. Evaluate & Visualize πΌοΈ
Elbow Method & Silhouette Score to choose the best clusters Scatter plots & pair plots to visualize segmentation π Results π₯ Customers segmented into X groups based on spending behavior! π― Found high spenders, budget shoppers, and potential VIP customers!