Abstract

In this business world where customers are increasing daily, it gets difficult to focus on each customer. Analyzing the customers past transactions would help the seller to satisfy customer demands and can easily attract new customers. Companies segments the customers to attain maximum profit and increase in sales. Companies need to understand this data and identify the similarity and dissimilarities in customer’s needs, Customer segmentation uses unsupervised learning to segment customers into multiple distinct groups. In this paper we will use algorithms like k-means clustering and hierarchical clustering.

Key words: Customer Segmentation, K-Means, Hierarchical, Clustering Types