Project : Customer Segmentation

Customer-segmentation for differentiated targeting in marketing ...

Customer segmentation is the practice of dividing a company’s customers into groups that reflect similarity among customers in each group. The goal of segmenting customers is to decide how to relate to customers in each segment in order to maximize the value of each customer to the business.

The Importance of Customer Segmentation
Customer segmentation has the potential to allow marketers to address each customer in the most effective way. Using a large amount of data available on customers (and potential customers), a customer segmentation analysis allows marketers to identify discrete groups of customers with a high degree of accuracy based on demographic, behavioral, and other indicators.

Since the marketer’s goal is usually to maximize the value (revenue and/or profit) from each customer, it is critical to know in advance how any particular marketing action will influence the customer. Ideally, such “action-centric” customer segmentation will not focus on the short-term value of marketing activities, but rather the long-term customer lifetime value (CLV) impact that such a marketing activity will have. Thus, it is necessary to group or segment, customers according to their CLV.

You can find the data here: https://www.kaggle.com/vjchoudhary7/customer-segmentation-tutorial-in-python

Let's look at the project at the Kaggle site: https://www.kaggle.com/samansiadati/customer-segmentation

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