Customer Segmentation Using Clustering Algorithm

In the past years, data mining and machine learning techniques are getting used frequently to obtain predictions and to answer as many questions that may arise from the data. In this paper, customer segmentation approach is described. Customer segmentation has nearly limitless potential as a tool for guiding businesses toward more effective marketing and product development. The methods discussed in this article for customer segmentation is based on clustering algorithms. In order to visualize data and the resulting cluster a visualization tool is also used. Finally, a general latent class model is considered that can handle multiple dependent measures of mixed type.