Project information
- Category: Machine Learning
- Tools: KMeans, PCA, Clustering
- DB-index: 81%
- Project URL: GitHub
Project Details
πΌ Customer Segmentation Using Clustering
π Problem Statement
The goal is to segment banking customers into distinct groups based on behavioral and financial data. This segmentation helps businesses better understand their customers and tailor services accordingly.
π Data Collection
Dataset Source: Banking CRM customer data (synthetic or anonymized)
Features Used:
- Age: Customerβs age
- Income: Annual income
- Spending Score: Behavior-based spending metric
- Other financial/behavioral metrics: (as included in the dataset)
π Methods Applied:
- Data Preprocessing (scaling, cleaning)
- Feature reduction using PCA to reduce dimensionality
- Customer grouping via KMeans clustering
- Cluster validation using Davies-Bouldin Index = 0.81
π Results:
- Optimal number of clusters: 4
- Distinct groups identified based on income and spending score
- Useful insights for targeted marketing
π οΈ How to Run the Project:
1. Clone the repository:
git clone https://github.com/Mazenasag/Banking-Solutions-Customer-Segmentation-
2. Navigate to project folder:
cd customer-segmentation
3. Install dependencies:
pip install -r requirements.txt
4. Run the analysis:
python main.py
π Future Enhancements:
- Visualize clusters using t-SNE
- Deploy as a dashboard using Streamlit
- Integrate with CRM system for real-time segmentation
π₯ Contributor: Mazen Asag
π License: MIT License
Explore more insights by segmenting your customers efficiently! π