Using Machine Learning in Customer Segmentation
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In the past, businesses grouped customers based on simple things like age or gender. Now, machine learning has changed this process. Machine learning algorithms can analyze large amounts of data. In this article, we will explore how machine learning improves customer segmentation.
Introduction to Customer Segmentation
Customer segmentation divides customers into different groups. These groups are based on similar traits or behaviors. The main goal is to understand each group better. This helps businesses create marketing strategies and products that fit each group’s specific needs.
The customers can be divided into groups based on several criteria:
- Demographic Segmentation: Based