A customer base into groups or segments based on their unique characteristics, preferences, and behaviors. The goal of customer segmentation is to better understand the needs and behaviors of different customer groups so that businesses can tailor their marketing strategies and products to meet the specific needs of each segment.
K-Means clustering is an unsupervised machine learning algorithm that divides the given data into the given number of clusters. Here, the “K” is the given number of predefined clusters, that need to be created. It is a centroid based algorithm in which each cluster is associated with a centroid. The main idea is to reduce the distance between the data points and their respective cluster centroid. The algorithm takes raw unlabelled data as an input and divides the dataset into clusters and the process is repeated until the best clusters are found.
