Customer Segmentation Project - Stepwise Process

Step Description Output
1. Planning & Objectives Defined project goals and key segmentation metrics with marketing team. Clear segmentation objectives and target insights.
2. Data Collection
  • CRM data (demographics, purchases)
  • Behavioral and engagement data
  • Feedback and survey data
Comprehensive dataset for clustering.
3. Data Cleaning & Preparation
  • Removed incomplete records
  • Standardized variables for modeling
Cleaned dataset ready for segmentation.
4. Segmentation Modeling Applied clustering algorithms (e.g., K-means) to segment customers. Segmented customer groups with similar behaviors.
5. Visualization & Insights
  • Interactive dashboards with segment profiles
  • Actionable insights for targeting and retention
Clear, data-driven customer segments.
6. Testing & Validation
  • Segment accuracy checks
  • Refinements based on marketing feedback
Accurate and actionable segmentation results.
Final Output Fully functional segmentation dashboard integrated into marketing strategy.
  • Improved campaign targeting
  • Higher customer engagement
  • Better customer retention