Customer Segmentation Using Machine Learning

Abstract: Nowadays Customer segmentation became very popular method for dividing company’s customers for retaining customers and making profit out of them, in the following study customers of different of organizations are classified on the basis of their behavioral characteristics such as spending and income, by taking behavioral aspects into consideration makes these methods an efficient one as compares to others. For this classification a machine algorithm named as k- means clustering algorithm is used and based on the behavioral characteristic’s customers are classified. Formed clusters help the company to target individual customer and advertise the content to them through marketing campaign and social media sites which they are really interested in.

Keywords: Machine learning, Customer segmentation, K-means algorithm