Market segmentation can help you to define and better understand your target audiences and ideal customers. If you're a marketer, this allows you to identify the right market for your products and then target your marketing more effectively.
Using Machine Learning algorithms makes it easy to segment your customers according to their behaviours. This can be done by just collecting basic data for example customer's annual income, their purchase history etc. Usually mall owners issue a card to customers which is used to track their purchase history.
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Target group will be Cluster 1 which has Highest spending score and high annual Income.
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Approx 54% of Cluster 1 shoppers are females. We should look these customers to attract and made them purchase more by doing marketing campaings and targeting popular items for these customers.
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Cluster 2 is a great opportunity to market them to the customers for sales event on popular items.
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The data has nearly gaussian distribution.
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Customers with low annual income have relatively low spending scores.
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Customers with fair enough income spend the most.
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Females spending score is more than males but the difference is not too significant.
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People of smaller ages spend less.
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Average age of cutomers is between 30 to 40 years.