Creating Customer Segments

Reviewed unstructured data to understand the patterns and natural categories that the data fits into. Used multiple algorithms and both empirically and theoretically compared and contrasted their results. Made predictions about the natural categories of multiple types in a dataset, then checked these predictions against the result of unsupervised analysis.

See my implementation and report here.

Project Brief

A wholesale distributor recently tested a change to their delivery method for some customers, by moving from a morning delivery service five days a week to a cheaper evening delivery service three days a week. Initial testing did not discover any significant unsatisfactory results, so they implemented the cheaper option for all customers. Almost immediately, the distributor began getting complaints about the delivery service change and customers were canceling deliveries — losing the distributor more money than what was being saved. You’ve been hired by the wholesale distributor to find what types of customers they have to help them make better, more informed business decisions in the future. Your task is to use unsupervised learning techniques to see if any similarities exist between customers, and how to best segment customers into distinct categories.

Project Evaluation

My project was evaluated against the Creating Customer Segments project rubric.

Files Submitted

• The customer_segments.ipynb notebook file with all questions answered and all code cells executed and displaying output.
• An HTML export of the project notebook with the name report.html.