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What is K-Means for Customer Segmentation about?

This document discusses using k-means clustering to segment customers based on their recency, frequency, and monetary value (RFM) characteristics for marketing purposes. It summarizes the steps taken to clean and prepare a dataset of customer purchase history records to calculate RFM scores at the customer level. These include restricting the data to a single country and year, identifying returns, and aggregating purchase counts and monetary amounts. The k-means clustering technique is then applied to the R

Author

Steven Moiet

Language

EN