Customer Segmentation in Python

Overview

Learn how to segment customers in Python.

The most successful companies today are the ones that know their customers so well that they can anticipate their needs. Data analysts play a key role in unlocking these in-depth insights, and segmenting the customers to better serve them. In this course, you will learn real-world techniques on customer segmentation and behavioral analytics, using a real dataset containing anonymized customer transactions from an online retailer. You will first run cohort analysis to understand customer trends. You will then learn how to build easy to interpret customer segments. On top of that, you will prepare the segments you created, making them ready for machine learning. Finally, you will make your segments more powerful with k-means clustering, in just few lines of code! By the end of this course, you will be able to apply practical customer behavioral analytics and segmentation techniques.

Syllabus

Cohort Analysis

In this first chapter, you will learn about cohorts and how to analyze them. You will create your own customer cohorts, get some metrics and visualize your results.

Recency, Frequency, and Monetary Value Analysis

In this second chapter, you will learn about customer segments. Specifically, you will get exposure to recency, frequency and monetary value, create customer segments based on these concepts, and analyze your results.

Data Preprocessing for Clustering

Once you created some segments, you want to make predictions. However, you first need to master practical data preparation methods to ensure your k-means clustering algorithm will uncover well-separated, sensible segments.

Customer Segmentation with K-means

In this final chapter, you will use the data you pre-processed in Chapter 3 to identify customer clusters based on their recency, frequency, and monetary value.