/customer-segmentation

Performing Customer Segmentation for an Online Retail Store

Primary LanguageJupyter Notebook

customer-segmentation using RFM framework

Performing Customer Segmentation for an Online Retail Store using RFM Framework

Prerequisites

Kindly create an environment and import the necessary libraries using the code below.

conda create --name <environment_name> --file requirements.txt

Background

E-commerce has been producing unicorns across the globe for the past five years. You could just imagine how massive the data these companies are consuming day in and day out. One of the interesting data science use cases in e-commerce is understanding the customer behavior with their purchase pattern.

And so, this mini-project is focused on segmenting customers based on their purchase pattern using the RFM (Recency-Frequence-Monetary) framework. We developed a script also for reusability for future e-commerce projects that may come about.

Important Files

  • rfm.py - This is the actual RFM script.
  • clustering_utilites.py - This is for utility functions for the clustering (planning to add more soon!)
  • sample-usage.ipynb - Here's a sample jupyter notebook showing a sample usage of the script.

Sample Usage

For sample usage, please refer to the "sample-usage.ipynb" notebook.

Good Articles about RFM

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