Machine Learning Approaches for Customer Segmentation

Nowadays many organizations are giving importance to Customer Relationship Management to increase their profit, customer satisfaction and for retaining the customers. Personalization has a crucial role in business since it provides opportunity for the companies to think creative about how to retain and grab their customers. Customer segmentation is one of the fundamental ways towards personalization. Proper segmentation will help the organizations to make crucial decisions regarding pricing, marketing strategies, product recommendation etc. It is very difficult to conduct this segmentation manually. In this paper the benefits of using Machine Learning in customer segmentation has been described. Clustering technique is one of the methods to segment the customer into different groups. This paper mainly concentrates on various approaches for categorizing the customers.