We live in a world where large and vast amount of data is collected daily. Analyzing such data is an important need. In the modern era of innovation, where there is a large competition to be better then everyone, the business strategy needs to be according to the modern conditions. The business done today runs on the basis of innovative ideas as there are large number of potential customers who are confounded to what to buy and what not to buy. The companies doing the business are also not able to diagnose the target potential customers.
This is where the machine learning comes into picture, the various algorithms are applied to identify the hidden patterns in the data for better decision making. The concept of which customer segment to target is done using the customer segmentation process using the clustering technique. In this paper, the clustering algorithm used is K-means algorithm which is the partitioning algorithm, to segment the customers according to the similar characteristics. To determine the optimal clusters, elbow method is used.
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