To develop a customer segmentation to define marketing strategy.
Customer segmentation is necessary. You can’t serve every customer the same product, experience, or ad as they won’t resonate with it the same. Doing so results in low-click through rate, engagement, and conversions.
That’s where segmenting comes into the picture. Finding all of the unique groups that make up a bigger customer base lets you get into customer’s heads and give them exactly what they want, improving their experience and boosting revenue.
Used Silhouette Scores as metric to validate performance of various clusters
Based on the graph above, it is clear that 4 clusters are showing better distinguised characteristics among the group of customers.
Distribution with 4 Clusters
