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.