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Dynamic Customer Segmentation Using Unsupervised Machine Learning in Python

Dynamic customer segmentation using unsupervised machine learning helps businesses identify customer behavior patterns, enabling targeted marketing and personalized experiences. Key processes include data collection, cleaning, and feature engineering, with algorithms like K-means clustering used for analysis. The approach is applicable across various industries, including retail and finance, to enhance customer satisfaction and drive informed decision-making.

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vaishnavi Nesam.k
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19 views8 pages

Dynamic Customer Segmentation Using Unsupervised Machine Learning in Python

Dynamic customer segmentation using unsupervised machine learning helps businesses identify customer behavior patterns, enabling targeted marketing and personalized experiences. Key processes include data collection, cleaning, and feature engineering, with algorithms like K-means clustering used for analysis. The approach is applicable across various industries, including retail and finance, to enhance customer satisfaction and drive informed decision-making.

Uploaded by

vaishnavi Nesam.k
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Dynamic Customer

Segmentation
using Unsupervised
Machine Learning
in Python
Dynamic customer segmentation using unsupervised machine learning
enables businesses to uncover patterns and insights from customer data,
leading to targeted marketing strategies and personalized customer
experiences. This approach is instrumental in understanding customer
behavior, preferences, and needs.

Va
by Vaishnavi Nesam
Benefits of Dynamic Customer
Segmentation

Targeted Marketing Personalized Informed


Segmentation allows for
Experiences Decision-Making
tailored marketing efforts Businesses can deliver Insights from segmentation
based on customer behavior customized experiences, support data-driven decision-
and preferences. improving customer making and strategy
satisfaction and loyalty. development.
Overview of Unsupervised
Machine Learning
Definition Application Key Algorithms

Unsupervised learning It is widely used for Common algorithms include


identifies patterns in data clustering, anomaly K-means clustering and
without explicit input labels. detection, and pattern hierarchical clustering.
recognition.
Introduction to Python for
Machine Learning

Python Language Machine Learning Community Support


Python is a popular language Python offers extensive A vibrant and active
for machine learning due to libraries and frameworks for community provides ample
its simplicity and versatility. machine learning and data resources and support for
analysis. Python developers.
Preprocessing Customer Data
Data Collection
Collect and organize customer data from various sources and touchpoints.

Data Cleaning
Remove inconsistencies, errors, and irrelevant information from the dataset.

Feature Engineering
Transform and select features to prepare the data for machine learning algorithms.
Applying Unsupervised
Machine Learning Algorithms

1 2
Clustering Anomaly Detection
Utilize clustering algorithms to group customers Detect unusual patterns that deviate from the
based on similar characteristics. norm within the customer data.
Evaluating and Interpreting
Customer Segments
Segment Metrics Assess segment performance using metrics
like conversion rates and customer lifetime
value.

Pattern Analysis Identify behavioral patterns and preferences


within each customer segment.

Insights Generation Derive actionable insights for targeted


marketing and product development.
Case Studies and Real-World
Applications
Retail Industry Finance Sector E-commerce
Retailers use Banks employ E-commerce platforms
segmentation to segmentation for leverage segmentation to
customize promotions personalized financial enhance customer
and product services and risk experiences and boost
recommendations. assessment. sales.

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