PROJECT TITLE : CUSTOMER SEGMENTATION
TEAM MEMBERS
1. R NAVEEN 21R11A6751
2. N LIKITH 21R11A6739
3. P SAHAN 21R11A6747
SUPERVISOR’S NAME : DR. A VENKATA RAMANA
DATE : 28-08-2024
ABSTRACT
NOWADAYS CUSTOMER SEGMENTATION BECAME VERY POPULAR METHOD FOR DIVIDING
COMPANY’S CUSTOMERS FOR RETAINING CUSTOMERS AND MAKING PROFIT OUT OF THEM, IN
THE FOLLOWING STUDY CUSTOMERS OF DIFFERENT OF ORGANIZATIONS ARE CLASSIFIED ON
THE BASIS OF THEIR BEHAVIORAL CHARACTERISTICS SUCH AS SPENDING AND INCOME, BY
TAKING BEHAVIORAL ASPECTS INTO CONSIDERATION MAKES THESE METHODS AN EFFICIENT
ONE AS COMPARES TO OTHERS. FOR THIS CLASSIFICATION A MACHINE ALGORITHM NAMED AS
KMEANS CLUSTERING ALGORITHM IS USED AND BASED ON THE BEHAVIORAL CHARACTERISTIC’S
CUSTOMERS ARE CLASSIFIED. FORMED CLUSTERS HELP THE COMPANY TO TARGET INDIVIDUAL
CUSTOMER AND ADVERTISE THE CONTENT TO THEM THROUGH MARKETING CAMPAIGN AND
SOCIAL MEDIA SITES WHICH THEY ARE REALLY INTERESTED.
TABLE OF CONTENTS:
CONTENTS PAGE
S.NO NO:
1) ABSTRACT 1
2) LITERATURE SURVEY 4
3) GAP ANALYSIS (5-7)
4) USER EXPERIENCE (UX) 8
5) TECHNICAL FRAMEWORK 9
LITERATURE SURVEY
A LITERATURE SURVEY ON CUSTOMER SEGMENTATION
COVERS VARIOUS METHODOLOGIES, FRAMEWORKS, AND
APPROACHES THAT ORGANIZATIONS USE TO DIVIDE THEIR
CUSTOMER BASE INTO DISTINCT GROUPS BASED ON SHARED
CHARACTERISTICS. THIS SEGMENTATION ALLOWS BUSINESSES
TO TAILOR THEIR MARKETING EFFORTS, IMPROVE CUSTOMER
SATISFACTION, AND INCREASE PROFITABILITY. BELOW IS A
SUMMARY OF KEY POINTS FROM LITERATURE ON
CUSTOMER SEGMENTATION.
GAP ANALYSIS
CURRENT STATE :
Current Segmentation Criteria: Identify and document
the criteria currently used for customer segmentation.
This might include demographic, geographic,
behavioral, or psychographic factors.Segmentation
Techniques: Assess the methods and tools used (e.g.,
manual segmentation, basic clustering, RFM
analysis).Data Quality and Availability: Evaluate the data
sources and the quality of data being used for
segmentation (e.g., CRM data, purchase history, online
behavior).Business Outcomes: Review the outcomes of
current segmentation efforts, including customer
engagement levels, marketing campaign performance,
and overall customer satisfaction.
3. SCALABILITY
PROPOSED SYSTEM:
- INFRASTRUCTURE: ENSURE THAT THE TECHNICAL INFRASTRUCTURE CAN
SCALE WITH DATA GROWTH, POSSIBLY INVOLVING CLOUD-BASED
SOLUTIONS OR BIG DATA TECHNOLOGIES LIKE HADOOP OR SPARK.
-AUTOMATED PIPELINES: IMPLEMENT AUTOMATED DATA PIPELINES FOR
CONTINUOUS DATA PROCESSING AND SEGMENTATION MODEL UPDATES.
-DATA PRIVACY: ENSURE COMPLIANCE WITH DATA PROTECTION
REGULATIONS (E.G., GDPR, CCPA).
-BIAS AND FAIRNESS: MONITOR FOR AND MITIGATE BIAS IN SEGMENTATION
MODELS TO AVOID DISCRIMINATORY PRACTICES.
-USABILITY OF CUSTOMER SEGMENTATION REFERS TO
HOW
EFFECTIVELY AND EFFICIENTLY CUSTOMER SEGMENTS
CAN BE USED BY
AN ORGANIZATION TO ACHIEVE ITS GOALS. GOOD
USABILITY
ENSURES THAT CUSTOMER SEGMENTATION IS NOT JUST A
THEORETICAL
EXERCISE BUT A PRACTICAL TOOL THAT CAN BE EASILY
IMPLEMENTED AND
LEVERAGED ACROSS VARIOUS BUSINESS FUNCTIONS,
SUCH AS MARKETING,
SALES, PRODUCT DEVELOPMENT, AND
CUSTOMER SERVICE..
USER EXPERIENCE (UX)
INTUITIVE USER INTERFACE: SIMPLIFIES NAVIGATION AND REDUCES THE LEARNING
CURVE.
DATA ACCESSIBILITY: SEAMLESS INTEGRATION WITH EXISTING SYSTEMS AND REAL-TIME
ACCESS.
CUSTOMIZATION AND FLEXIBILITY: ABILITY TO CREATE AND ADJUST SEGMENTS BASED
ON SPECIFIC CRITERIA.
ACTIONABLE INSIGHTS: CLEAR DATA VISUALIZATIONS AND INSIGHTFUL
RECOMMENDATIONS.
EFFICIENCY AND PERFORMANCE: HANDLES LARGE DATASETS QUICKLY AND SCALES
WITH GROWTH.
SUPPORT AND TRAINING: COMPREHENSIVE DOCUMENTATION AND RESPONSIVE
SUPPORT.
WORKFLOW INTEGRATION: EFFECTIVE USE OF SEGMENTED DATA IN MARKETING
AUTOMATION AND SALES SYSTEMS.
USER FEEDBACK AND IMPROVEMENT: MECHANISMS FOR CONTINUOUS REFINEMENT
BASED ON USER INPUT.
TECHNICAL FRAMEWORK
PANDAS: A PYTHON LIBRARY FOR DATA MANIPULATION AND
ANALYSIS, PROVIDING DATA STRUCTURES LIKE DATAFRAMES FOR
HANDLING TABULAR DATA.
NUMPY: A PYTHON LIBRARY FOR NUMERICAL COMPUTING,
OFFERING SUPPORT FOR LARGE, MULTI-DIMENSIONAL ARRAYS AND
MATHEMATICAL FUNCTIONS.
SCIKIT-LEARN: A PYTHON LIBRARY FOR MACHINE LEARNING,
PROVIDING SIMPLE TOOLS FOR CLASSIFICATION, REGRESSION,
CLUSTERING, AND MORE.
POWER BI: A MICROSOFT TOOL FOR CREATING INTERACTIVE DATA
VISUALIZATIONS AND REPORTS, HELPING USERS ANALYZE AND
SHARE INSIGHTS FROM THEIR DATA.
REFERENCES
- HTTPS://WWW.ACADEMIA.EDU/DOWNLOAD/53578981/IRJET-V4I5564.P
DF
- HTTPS://DL.ACM.ORG/DOI/ABS/10.1145/3473714.3473767
- HTTPS://XBLK.ECNU.EDU.CN/EN/ABSTRACT/ABSTRACT25253.SHTML
CONCLUSION
CUSTOMER SEGMENTATION IS A POWERFUL STRATEGY THAT
ENABLES BUSINESSES TO UNDERSTAND AND CATER TO THE
DIVERSE NEEDS OF THEIR CUSTOMER BASE. BY DIVIDING THE
MARKET INTO DISTINCT GROUPS BASED ON SHARED
CHARACTERISTICS SUCH AS DEMOGRAPHICS, BEHAVIORS, AND
PREFERENCES, COMPANIES CAN CREATE MORE TARGETED AND
PERSONALIZED MARKETING STRATEGIES. THIS NOT ONLY ENHANCES
CUSTOMER SATISFACTION AND LOYALTY BUT ALSO IMPROVES THE
EFFICIENCY OF MARKETING EFFORTS, LEADING TO BETTER
ALLOCATION OF RESOURCES AND HIGHER RETURNS ON
INVESTMENT. ULTIMATELY, EFFECTIVE CUSTOMER SEGMENTATION
ALLOWS BUSINESSES TO DELIVER MORE RELEVANT PRODUCTS AND
SERVICES, FOSTERING STRONGER RELATIONSHIPS WITH
CUSTOMERS AND DRIVING SUSTAINABLE GROWTH.
