Making sense of the K-means clusters

Cluster Analysis in R

Dmitriy (Dima) Gorenshteyn

Lead Data Scientist, Memorial Sloan Kettering Cancer Center

Wholesale dataset

45 observations
3 features:
- Milk Spending
- Grocery Spending
- Frozen Food Spending

print(customers_spend)

    Milk Grocery Frozen
1  11103   12469    902
2   2013    6550    909
3   1897    5234    417
4   1304    3643   3045
5   3199    6986   1455
...  ...     ...    ...

Segmenting with hierarchical clustering

cluster	Milk	Grocery	Frozen	cluster size
1	16950	12891	991	5
2	2512	5228	1795	29
3	10452	22550	1354	5
4	1249	3916	10888	6

Segmenting with K-means

Estimate the "best" k using average silhouette width
Run k-means with the suggested k
Characterize the spending habits of these clusters of customers

Let's cluster!

Cluster Analysis in R