/Customer-Segmentation-using-KMeans-and-PCA

Marketing is essential for brands to attract customers. One of the dwelling pain points of companies is to segment customers in a way so that marketers can lauch campagines targeting to particular segments

Primary LanguageJupyter Notebook

Customer-Segmentation-using-KMeans-and-PCA

Marketing is essential for brands to attract customers. One of the dwelling pain points of companies is to segment customers in a way so that marketers can lauch campagines targeting to particular segments.

The dataset used for this project is of a bank's customers having 8000+ records and 18 features. Some of the features are discussed below

Understanding Data:

  • CUSTID: Identification of Credit Card holder
  • BALANCE: Balance amount left in customer's account to make purchases
  • BALANCE_FREQUENCY: How frequently the Balance is updated, score between 0 and 1 (1 = frequently updated, 0 = not frequently updated)
  • PURCHASES: Amount of purchases made from account
  • ONEOFFPURCHASES: Maximum purchase amount done in one-go
  • INSTALLMENTS_PURCHASES: Amount of purchase done in installment
  • CASH_ADVANCE: Cash in advance given by the user
  • PURCHASES_FREQUENCY: How frequently the Purchases are being made, score between 0 and 1 (1 = frequently purchased, 0 = not frequently purchased)
  • ONEOFF_PURCHASES_FREQUENCY: How frequently Purchases are happening in one-go (1 = frequently purchased, 0 = not frequently purchased)
  • PURCHASES_INSTALLMENTS_FREQUENCY: How frequently purchases in installments are being done (1 = frequently done, 0 = not frequently done)
  • CASH_ADVANCE_FREQUENCY: How frequently the cash in advance being paid
  • CASH_ADVANCE_TRX: Number of Transactions made with "Cash in Advance"
  • PURCHASES_TRX: Number of purchase transactions made
  • CREDIT_LIMIT: Limit of Credit Card for user
  • PAYMENTS: Amount of Payment done by user
  • MINIMUM_PAYMENTS: Minimum amount of payments made by user
  • PRC_FULL_PAYMENT: Percent of full payment paid by user
  • TENURE: Tenure of credit card service for user

Elbow method to get the best no of clusters PCA for KMEANS clusters