Welcome to the Mall Customer Segmentation project! This project leverages the power of K-Means Clustering π to analyze customer behavior and group them into actionable segments. By doing so, businesses can refine their marketing strategies and boost profitability.
- π About the Project
- π― Objectives
- π Dataset Overview
- βοΈ Methodology
- π Key Insights
- π Results
- π Getting Started
- π€ Contributing
- π¬ Contact
Customer Segmentation is a critical technique in modern marketing ποΈ. This project uses machine learning to group customers based on their:
- Age π
- Annual Income π°
- Spending Score π
These clusters help businesses make smarter, data-driven decisions! π‘
π― Identify meaningful customer segments.
π― Group customers using the K-Means Clustering algorithm.
π― Analyze customer behavior for targeted marketing strategies.
- Source: Mall Customer Segmentation Dataset provided by Exposys Data Labs.
- Features:
- Gender π©βπ¦±π¨βπ¦±
- Age π
- Annual Income π°
- Spending Score π
- Target Attributes: Age, Annual Income, Spending Score.
This project follows a structured approach:
-
π Exploratory Data Analysis (EDA):
- Visualized customer distributions (age, income, and spending score).
- Observed patterns and trends.
-
π K-Means Clustering:
- Applied the K-Means algorithm to group customers.
- Determined the optimal number of clusters using the Elbow Method π.
-
π¨ Visualization:
- Created interactive cluster plots to highlight group differences.
The customers were grouped into 5 clusters:
- π Balanced Customers: Low income, low spending.
- π΅ Pinch-Penny Customers: High income, low spending.
- π£ Normal Customers: Average income and spending.
- π΄ Spenders: Low income, high spending.
- π’ Target Customers: High income, high spending (prime profit sources π).
β¨ Clusters Identified:
- Enabled strategic decision-making for personalized marketing campaigns π―.
- Highlighted profitable customer groups and potential improvements in service.
π‘ Marketing Recommendations:
- π Offer exclusive discounts to Target Customers.
- π Improve services for Pinch-Penny Customers to increase spending.
- π Send weekly promotional emails to Balanced Customers to drive engagement.
Ensure you have the following installed:
- Python π
- Jupyter Notebook π
Contributions are always welcome! π οΈ
For any queries or suggestions, feel free to reach out
If you found this project helpful, please give it a β on GitHub! π