CUSTOMER SEGMENTATION
Project Overview
Project Title: Customer Segmentation using Data Science Techniques.
Project Phase: Phase 1 – Problem Definition and Design Thinking.
Dataset Link:
Project Description
The project aims to implement data science techniques to segment
customers based on their behavior, preferences, and demographic
attributes. The primary objective is to empower businesses to personalize
marketing strategies and enhance overall customer satisfaction. The
Project encompasses several essential steps, including data collection, data
preprocessing, feature engineering, the application of clustering
algorithms, visualization of results, and interpretation of customer
segments.
Project Goals
Segment customers into distinct groups based on their behavioral
patterns, preferences, and demographic characteristics.
Develop actionable insights to inform personalized marketing
strategies.
Enhance customer satisfaction and engagement through targeted
marketing approaches.
Enable data-driven decision-making for business growth.
Design Thinking
Data Collection
Collect customer data, including attributes like purchase history, demographic
information, and interaction behavior.
Step 1: Import the libraries
Step 2: Using pandas libraries read the csv file
Step 3: Print the head of the csv file
Output:
Data Preproessing
Cleaning and preprocessing data for mall customers from a CSV file
typically involves tasks like handling missing values, encoding
categorical features, and scaling or normalizing numerical features.
Here’s a Python program using the pandas library to clean and
preprocess a CSV file containing mall customer data:
(1) Check for missing values
Output:
(2) Handling Missing values (if any)
(3) Encode categorical features(if any)
Example: Encode the ‘Genre’ column using Label Encoding
(4) Display the first few rows of the cleaned data
Feature Engineering
Create additional features that capture customer behavior and
preferences, such as total spending, frequency of purchases,
etc.
In ths above Code shows,
1. Import packages
2. Load the dataset from the provided path
3. Feature Engineering
4. Save the modified Dataframe back to a CSV file
This code will create a new CSV file named
“modified_mall_customers.csv” in the current directory, containing
the original columns and the newly added ‘Total_Spending’
column. The ‘index=False’ argument that the DataFrame index is
not saved as a separate column in the CSV file.
Clustering Algorithm
Apply clustering algorithms (e.g., K-Means, DBSCAN, hierarchical
clustering) to segment customers effectively
By using the K-Means Algorithm
Visualization
To visualize customer segments using various techniques such as
scatter plots, bar charts and heatmaps.
Interpretation
Creating a Python program for the interpretation
Phase of your customer segmentation .
1. Import the Libraries
2. Load the preprocessed dataset
3. Assuming already performed clustering (K-means)
4. Fit the Clustering model
5. Now, we have a ‘Cluster’ column in our Dataframe indicating which
cluster each customer belongs to.
6. Interpretate and Analyze the characterisitics of each cluster
7. Perform further analysis to derive actionable insights
Expected Deliverables
Cleaned and preprocessed customer dataset
Feature e-engineered dataset
Customer segmentation using clustering algorithms
Visualizaion illustrating customer segments
Interpretation and insights delivered from the segmentation.
Submitted By:
S. Dhanalakshmi B.tech information Technology
IBM Naan Mudhalvan Applied Data Science Group 2
