
Customer Segmentation — K-Means + PCA
Segmented 2,000 customers into four behavioural clusters using K-Means with PCA dimensionality reduction. Optimal K=4 via the Elbow Method and validated with a Silhouette Score of 0.255.
- —Power Shoppers (n=617): 40 purchases/yr · $202 avg order.
- —Dormant Churners (n=282): 235 days inactive — retention risk.
- —Loyal Seniors (n=398): $79K income · 5.4-year membership.
- —Casual Browsers (n=703): still engaged, upsell opportunity.






