Implement end-to-end segmentation solution

Customer Segmentation in Python

Karolis Urbonas

Head of Data Science, Amazon

Key steps of the segmentation project

• Gather data - updated data with an additional variable
• Pre-process the data
• Explore the data and decide on the number of clusters
• Run k-means clustering
• Analyze and visualize results

Updated RFM data

• Same RFM values plus additional Tenure variable
• Tenure - time since the first transaction
• Defines how long the customer has been with the company

Goals for this project

• Remember key pre-processing rules
• Apply data exploration techniques
• Practice running several k-means iterations
• Analyze results quantitatively and visually

Let's dig in!

Customer Segmentation in Python