Customer Segmentation is the subdivision of a market into discrete customer groups that share similar characteristics and it can be a powerful means to identify unsatisfied customer needs.
Here is the approach for customer segmentation using K-means Clustering.
This file contains distribution of each feature before making a 3D plot to visualize the spending score of the customers with their annual income and the data points are separated into 5 classes i.e. 5 clusters.
This is followed by visualizing a elbow plot which is calculating the Within Cluster Sum of Squared Errors (WSS) for different values of k, and choose the k for which WSS first starts to diminish.
Customer Segmentation is the subdivision of a market into discrete customer groups that share similar characteristics and it can be a powerful means to identify unsatisfied customer needs. Here is the approach for customer segmentation using K-means Clustering. This file contains distribution of each feature before making a 3D plot to visualize the spending score of the customers with their annual income and the data points are separated into 5 classes i.e. 5 clusters. This is followed by visualizing a elbow plot which is calculating the Within Cluster Sum of Squared Errors (WSS) for different values of k, and choose the k for which WSS first starts to diminish.