Lesson 11.4: Project 3 – Customer Segmentation (Clustering)
🔹 Objective
Segment customers into distinct groups based on behavior or features like age, income, spending score, etc.
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Practice unsupervised learning, data preprocessing, and clustering techniques.
🔹 Steps to Build the Project
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Load Dataset
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Understand Dataset
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Check columns, data types, missing values.
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Identify numeric features suitable for clustering.
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Preprocess Data
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Handle missing values → Fill or drop as needed.
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Feature scaling → Important for clustering (StandardScaler or MinMaxScaler)
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Apply Clustering (K-Means)
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Visualize Clusters
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Optional Improvements
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Use Elbow Method to find optimal number of clusters.
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Try Hierarchical Clustering or DBSCAN.
🔹 Key Learnings
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Clustering groups similar customers without labeled outcomes.
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Feature scaling is crucial for distance-based algorithms.
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Useful for marketing strategies and customer analysis.
✅ Quick Recap:
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Task → Segment customers (unsupervised learning).
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Steps → Load → Preprocess → Scale → Cluster → Visualize.
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Improve → Optimal clusters, advanced clustering methods.
