Dividing customers into distinct groups based on behaviors, needs, or value to tailor products and communication.
- Clustering techniques (K-means, DBSCAN, hierarchical clustering).
- RFM (Recency, Frequency, Monetary) analysis.
- Dimensionality reduction (PCA, t-SNE) for visualization and segmentation.
Enables personalized marketing, cross-selling, retention strategies, and product innovation.