🛍️ Customer Segmentation using Machine Learning

A complete end-to-end customer segmentation project using K-Means Clustering to analyze customer behavior and identify meaningful groups for business decision-making.

🚀 Project Overview

Customer segmentation plays a key role in understanding consumer behavior and improving marketing strategies.
In this project, we use unsupervised machine learning to group customers based on their purchasing patterns.

This project demonstrates:

• Data preprocessing
• Exploratory Data Analysis (EDA)
• Feature selection
• Clustering using K-Means
• Data visualization

📊 Dataset Information

• Dataset Name: Mall Customers Dataset
• Source: Public dataset
• Features Used:
  • Gender
  • Age
  • Annual Income (k$)
  • Spending Score (1–100)

🧠 Problem Statement

To segment customers into meaningful groups based on spending behavior and income, helping businesses:

• Target the right audience
• Improve customer engagement
• Optimize marketing strategies

🛠️ Tech Stack

• Programming Language: Python
• Libraries Used:
  • NumPy
  • Pandas
  • Matplotlib
  • Seaborn
  • Scikit-learn

🔍 Project Workflow

1️⃣ Data Loading & Cleaning

• Loaded dataset using Pandas
• Checked data types and null values
• Removed unnecessary columns

2️⃣ Exploratory Data Analysis (EDA)

• Distribution analysis of:
  • Age
  • Annual Income
  • Spending Score
• Gender-based insights

3️⃣ Feature Selection

Selected important features such as:

• Age vs Spending Score
• Annual Income vs Spending Score

4️⃣ Model Building (K-Means Clustering)

• Used Elbow Method to determine optimal clusters
• Applied K-Means algorithm
• Labeled customer segments

5️⃣ Visualization

• Cluster visualization using scatter plots
• Clear differentiation of customer groups

📈 Results & Insights

• Customers were grouped into distinct clusters based on behavior
• Identified:
  • High-income high-spending customers
  • Budget-conscious customers
  • Average spenders
• These insights can help businesses improve:
  • Personalized marketing
  • Customer retention
  • Product recommendations

🧪 How to Run This Project

1️⃣ Clone the Repository

git clone https://github.com/ProblemShooter/customer-segmentation-ml.git
cd customer-segmentation-ml