Customer Segmentation using Clustering (Machine Learning)
Customer segmentation is the process of dividing a large customer base into smaller groups based on similar characteristics or behaviors, such as demographics, psychographics, purchase history, or engagement with the brand. The goal of customer segmentation is to create distinct groups of customers with unique needs, preferences, and behaviors, and to develop targeted marketing strategies to better serve each group.
Customer segmentation is a powerful tool for businesses looking to improve their marketing effectiveness, increase customer satisfaction and loyalty, and drive profitability. By understanding the unique needs and behaviors of different customer segments, businesses can create tailored marketing strategies that resonate with each group and drive long-term success.