December 13, 2020
This is a Jupyter notebook I created and published on Kaggle to demonstrate how clustering can be used for customer segmentation.
https://www.kaggle.com/pmrich/clustering-approaches-k-mean-birch-agg
Using clustering and credit card data, I can group the credit card users into three (or more) distinct groups that could be used for various business applications such as marketing and promotional campaigns from the financial institution.
Clustering is an effective technique used to find logical groupings in data. In the notebook, I explore the k-means clustering approach at length to identify customer segments in credit card data. I then use the BIRCH & Agglomerative clustering approaches to compare their results with the k-means algorithm.