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Unsupervised clustering of a retail store's customer database to perform Customer Segmentation and Profiling.

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Demographic Segmentation and Customer Profiling

Unsupervised clustering of a retail store's customer database to perform Demographic Segmentation and Customer Profiling

Customer Personality Analysis is a detailed analysis of a company’s ideal customers. It helps a business to better understand its customers and to modify its product based on its target customers from different types of customer segments, accomodating to the specific needs, behaviors and concerns of different types of customers.

For example, instead of spending money to market a new product to every customer in the company’s database, a company can analyze which customer segment is most likely to buy the product and then market the product only on that particular segment.

We aim to group similar types of customers based on their income, spending habits, and personal features. Dimensionality reduction is performed using PCA. Agglomerative clustering technique (with silhouette analysis) and DBSCAN were performed to form the clusters.

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