
Customer Segmentation using K-Means Clustering
Last Updated on July 26, 2023 by Editorial Team
Author(s): Dennis Niggl
Originally published on Towards AI.
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“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself”.
– Peter Drucker
Photo by Austin Distel on Unsplash
What is Customer Segmentation?
Customer segmentation is the process of dividing a company’s customers into groups where customers within each group share common characteristics (e.g., personality, interests, purchase history) within their group. The goal of segmenting customers is to decide how to relate to customers in each group in order to maximize the value of each customer to the business.
Segmentation offers a… Read the full blog for free on Medium.
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