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 Based on the python script output, we found out that through K-means algorithm for

clustering, the K-value = 3 i.e the number of identifiable clusters are 3 and this can be
seen through following charts where Silhouette score is maximum at value 3.

 So, from the data available, we have formulated 3 clusters as follows:

 Classification of Cluster (Profiling):


 Cluster 1:
So, they can be classified as “Recreational Shoppers”

 Cluster 2:
So, this cluster can be identified by “Economic Shoppers”.

 Cluster 3:
hence we can identify them as “Apathetic Shoppers”.

 Analysis of Segments:

Cluster 1 – Recreational Shoppers:


1. Identifiability: If the customer has income range around 60,000 Rs. and who values
shopping experience rather than comparing prices and has 3-4 mall visits per month then
we can identify him as recreational shopper and can be identified in this segment.
 As this is a premium segment and not very price sensitive so the premium product
categories and brands can be increased based on festivities and seasons so that the
high margins can be gained on this product through this segment.
 To attract these customers, we can drive marketing campaigns by organizing fun
store event or getting new brand collections and informing these through SMS
campaigns (assuming mobile numbers being collected at the time of previous
billings). So, this how the marketing can be done and consequently the profits can
be gained from the segment.

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