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This project uses K-Means Clustering to segment customers based on age, income, and spending score. It helps businesses identify customer behavior patterns, optimize marketing strategies, and maximize profits. By analyzing clusters, businesses can target specific groups and improve services for better engagement and satisfaction. πŸš€

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SaiSriramKamineni/Mall-Customer-Segmentation-Using-K-Means

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🎯Mall Customer Segmentation Using K-Means πŸš€

Welcome to the Mall Customer Segmentation project! This project leverages the power of K-Means Clustering πŸŒ€ to analyze customer behavior and group them into actionable segments. By doing so, businesses can refine their marketing strategies and boost profitability.


πŸ“‹ Table of Contents


πŸ“– About the Project

Customer Segmentation is a critical technique in modern marketing πŸ›οΈ. This project uses machine learning to group customers based on their:

  • Age πŸŽ‚
  • Annual Income πŸ’°
  • Spending Score πŸ›’

These clusters help businesses make smarter, data-driven decisions! πŸ’‘


🎯 Objectives

🎯 Identify meaningful customer segments.
🎯 Group customers using the K-Means Clustering algorithm.
🎯 Analyze customer behavior for targeted marketing strategies.


πŸ“Š Dataset Overview

  • Source: Mall Customer Segmentation Dataset provided by Exposys Data Labs.
  • Features:
    • Gender πŸ‘©β€πŸ¦±πŸ‘¨β€πŸ¦±
    • Age πŸŽ‚
    • Annual Income πŸ’°
    • Spending Score πŸ›’
  • Target Attributes: Age, Annual Income, Spending Score.

βš™οΈ Methodology

This project follows a structured approach:

  1. πŸ“Š Exploratory Data Analysis (EDA):

    • Visualized customer distributions (age, income, and spending score).
    • Observed patterns and trends.
  2. πŸŒ€ K-Means Clustering:

    • Applied the K-Means algorithm to group customers.
    • Determined the optimal number of clusters using the Elbow Method πŸ“.
  3. 🎨 Visualization:

    • Created interactive cluster plots to highlight group differences.

πŸ” Key Insights

The customers were grouped into 5 clusters:

  1. 🟠 Balanced Customers: Low income, low spending.
  2. πŸ”΅ Pinch-Penny Customers: High income, low spending.
  3. 🟣 Normal Customers: Average income and spending.
  4. πŸ”΄ Spenders: Low income, high spending.
  5. 🟒 Target Customers: High income, high spending (prime profit sources πŸ’Ž).

πŸ“ˆ Results

✨ Clusters Identified:

  • Enabled strategic decision-making for personalized marketing campaigns 🎯.
  • Highlighted profitable customer groups and potential improvements in service.

πŸ’‘ Marketing Recommendations:

  • 🎁 Offer exclusive discounts to Target Customers.
  • 🌟 Improve services for Pinch-Penny Customers to increase spending.
  • πŸ’Œ Send weekly promotional emails to Balanced Customers to drive engagement.

πŸš€ Getting Started

Prerequisites

Ensure you have the following installed:

  • Python 🐍
  • Jupyter Notebook πŸ““

🀝 Contributing

Contributions are always welcome! πŸ› οΈ

πŸ“¬ Contact

For any queries or suggestions, feel free to reach out

🌟 Show Your Support

If you found this project helpful, please give it a ⭐ on GitHub! 😊

About

This project uses K-Means Clustering to segment customers based on age, income, and spending score. It helps businesses identify customer behavior patterns, optimize marketing strategies, and maximize profits. By analyzing clusters, businesses can target specific groups and improve services for better engagement and satisfaction. πŸš€

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