Machine Learning Customer Segmentation

Starting at £7,500

Transform your customer data into actionable insights with our specialized customer segmentation solution, helping you identify distinct customer groups and tailor your marketing strategies accordingly.

What's Included:

  • Data Assessment: Comprehensive evaluation of your existing customer data.
  • Data Preparation: Cleaning, transformation, and feature engineering of your dataset.
  • Segmentation Model Development: Creation of machine learning models to identify distinct customer segments.
  • Segment Profiling: Detailed analysis of each customer segment's characteristics and behaviors.
  • Visualization Dashboard: Interactive dashboard to explore and understand customer segments.
  • Strategic Recommendations: Actionable insights for marketing and business strategies based on segments.
  • Implementation Guidance: Support for integrating insights into your marketing and sales processes.
  • Documentation: Comprehensive documentation of methodology, models, and findings.
  • Knowledge Transfer: Training session to help your team understand and utilize the segmentation results.

Technical Implementation:

Our customer segmentation solution uses Python and advanced clustering algorithms:

                    

*Example Code Customer Segmentation implementation with Python

import pandas as pd import numpy as np import matplotlib.pyplot as plt import seaborn as sns from sklearn.preprocessing import StandardScaler from sklearn.cluster import KMeans from sklearn.decomposition import PCA from sklearn.metrics import silhouette_score # Load and prepare customer data def prepare_customer_data(data_path): df = pd.read_csv(data_path) # Handle missing values df = df.dropna() # Select relevant features for segmentation features = ['purchase_frequency', 'recency', 'monetary_value', 'product_categories', 'engagement_score'] # Feature engineering df['customer_lifetime_value'] = df['monetary_value'] * df['purchase_frequency'] # Normalize features scaler = StandardScaler() df_scaled = scaler.fit_transform(df[features]) return df, df_scaled, features # Determine optimal number of clusters def find_optimal_clusters(data_scaled): silhouette_scores = [] K = range(2, 11) for k in K: kmeans = KMeans(n_clusters=k, random_state=42) kmeans.fit(data_scaled) silhouette_scores.append(silhouette_score(data_scaled, kmeans.labels_)) optimal_k = K[np.argmax(silhouette_scores)] return optimal_k # Create and analyze customer segments def create_customer_segments(df, data_scaled, optimal_k, features): kmeans = KMeans(n_clusters=optimal_k, random_state=42) df['segment'] = kmeans.fit_predict(data_scaled) # Analyze segments segment_analysis = df.groupby('segment').agg({ 'purchase_frequency': 'mean', 'recency': 'mean', 'monetary_value': 'mean', 'engagement_score': 'mean', 'customer_lifetime_value': 'mean' }) return df, segment_analysis, kmeans.cluster_centers_ # Visualize segments def visualize_segments(df, features): # Reduce dimensions for visualization pca = PCA(n_components=2) principal_components = pca.fit_transform(df[features]) # Create visualization plt.figure(figsize=(10, 8)) sns.scatterplot(x=principal_components[:, 0], y=principal_components[:, 1], hue=df['segment'], palette='viridis') plt.title('Customer Segments Visualization') plt.xlabel('Principal Component 1') plt.ylabel('Principal Component 2') plt.savefig('customer_segments.png') return principal_components, pca.explained_variance_ratio_

Delivery Timeline:

Approximately 3-4 weeks from project kickoff and receipt of your customer data.

Ideal For:

Businesses with customer data looking to improve marketing effectiveness, personalize customer experiences, optimize product offerings, or increase customer retention. Particularly valuable for e-commerce, retail, SaaS, and service-based businesses.

Data Requirements:

  • Customer transaction history (minimum 6 months of data)
  • Customer demographic information (if available)
  • Customer engagement metrics (website visits, email opens, etc.)
  • Product/service usage data (if applicable)

Deliverables:

  • Segmentation Report: Comprehensive analysis of identified customer segments.
  • Interactive Dashboard: Visual exploration of segments and their characteristics.
  • Strategic Recommendations: Actionable insights for each segment.
  • Technical Documentation: Methodology, models, and implementation details.
  • Segmentation Model: The trained machine learning model for ongoing use.

Optional Add-ons:

  • Predictive Churn Analysis (£1,500): Identify customers at risk of churning within each segment.
  • Personalization Strategy (£1,200): Detailed plan for personalizing marketing for each segment.
  • Integration Support (£800): Technical assistance integrating segmentation with your CRM or marketing platforms.
  • Quarterly Refresh (£750/quarter): Regular updates to your segmentation model with new data.
Discuss Customer Segmentation