Customer Segmentation- KMeans Clustering

• You are owing a supermarket mall and through membership cards , you have some basic data about your customers like Customer ID, age, gender, annual income and spending score. Spending Score is something you assign to the customer based on your defined parameters like customer behavior and purchasing data.


• You own the mall and want to understand the customers like who can be easily converge [Target Customers] so that the sense can be given to marketing team and plan the strategy accordingly.

More information on dataset

Outline:

1. Set up

2. Segmentation using Spending Score and Annual Income

3. K-Means Clustering

4. Finding the Optimal number of Clusters

5. Elbow Rule

6. Decision Boundaries

7. Silhouette Analysis

8. Silhouette Diagram

References:

hands-on machine learning with scikit-learn and tensorflow 2nd edition

Kaggle Notebook

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