The dataset contains information on marketing newsletters/e-mail campaigns (e-mail offers sent to customers) and transaction level data from customers. The transactional data shows which offer customers responded to, and what the customer ended up buying. The data is presented as an Excel workbook containing two worksheets. Each worksheet contains a different dataset.
We're trying to learn more about how our customers behave, so we can use their behavior (whether or not they purchased something based on an offer) as a way to group similar minded customers together. We can then study those groups to look for patterns and trends which can help us formulate future offers.
We employ K-Means Clustering. We use The Silhouette Method and The Elbow Sum-of-Squares Method to choose K. We Visualize Clusters using PCA.
We also try Density-Based Spatial Clustering of Applications with Noise as an alternate method of clustering.