A Study on Customer Segmentation Using K-Means Clustering for Online Shoppers

Abstract

The concept of the customer segmentation is to target and done using the customer segmentation process using the clustering technique. Customer Segmentation using K-Means Algorithm” is based on the Analyzing such data is an important need. In the modern era of innovation, where there is a large competition to be better then everyone, the business strategy needs to be according to the modern conditions. The business done today runs on the basis of innovative ideas as there are large number of potential customers who are confounded to what to buy and what not to buy. The companies doing the business are also not able to diagnose the target potential customers. Here, the clustering algorithm used is K-means algorithm which is the partitioning algorithm, to segment the customers according to the similar characteristics. Customer Segmentation is the best application of unsupervised learning. Using clustering, identify segments of customers in the dataset to target the potential user base. They divide day which requires more work and time to do. To determine the optimal clusters, elbow method is used. Analyzing such data is an important need. In the modern era of innovation, where there is a large competition to be better then everyone, the business strategy needs to be according to the modern conditions. The business done today runs on the basis of innovative ideas as there are large number of potential customers who are confounded to what to buy and what not to buy. The companies doing the business are also not able to diagnose the target potential customers. The concept of which customer segment to target is done using the customer segmentation process using the clustering technique. The clustering algorithm used is K-means algorithm which is the partitioning algorithm, to segment the customers according to the similar characteristics. A research design is a matter plan specifying the methods and procedures for collecting and analyzing the needed data. Research design based on the exploratory research technique method and analysis is made on primary data collection for the project study. To determine the optimal clusters, elbow method is used.