Strategic Insights into Customer Diversity: Unraveling Purchase Patterns, Income Disparities, and Relationship Dynamics through K-means Clustering for Enhanced Engagement and Loyalty

Abstract

This research paper explores the integral role of customer segmentation in modern marketing strategies, emphasizing its significance in understand-ing and catering to diverse customer needs. Acknowledging Exploratory Data Analysis (EDA) as a crucial preliminary step, the study investigates how EDA acts as a catalyst for effective segmentation algorithms by un-veiling hidden patterns in raw data. Through empirical evidence and case studies, the paper demonstrates the transformative impact of incorporat-ing EDA before deploying segmentation models. The results underscore the necessity of a robust EDA framework to extract actionable insights, enhancing the precision of targeted marketing efforts and aligning seg-mentation strategies with real-world customer dynamics. This research contributes valuable insights for practitioners and researchers seeking to optimize marketing strategies through a holistic approach that combines customer segmentation with exploratory data analysis.