The purpose of this project is to demonstrate how kmeans clustering can be used for customer segmentation. The data for this project comes from the mall-customers dataset, which includes gender, age, income, and spending score data for 200 customers.
In general, the goal of customer segmentation is to gain a better understanding of the customer base. Depending on the type of customer information available, the end product of customer segmentation varies.
The end goal of this project is to segment our customers into meaningful groups based on their annual income and spending score. In my view, it is important to understand that customer segmentation is not the product, but rather is one step in a process of finding out how to better meet the needs of customers.