Business question

Which natural groups exist among customers (or products), and how do they differ on behaviors we can act on?

What we would decide with this

Assign each unit to a segment, then tailor messaging, assortment, or support using the profile (average features per cluster). Revisit when data or strategy shifts.

Synthetic data

Rows are synthetic customers with features such as annual spend, visit frequency, and tenure. Seed: 42. See demos/segmentation-explainable/data/generate.py.

Approach

K-means (scikit-learn, k=3); features scaled with StandardScaler. Segment profiles: cluster centers in original feature space (inverse transform) plus a 2D PCA scatter for visualization.

Key outputs

Segments in PCA space and profile heatmap

Reproduce

cd demos/segmentation-explainable
python3 data/generate.py
python3 src/run.py

Dependencies: demos/requirements.txt.