Real-world applications of unsupervised learning
Unsupervised learning algorithms are being used today to solve some real-world business challenges. We will take a look at a few such challenges in this section.
Clustering applications
This section presents some of the real-world business applications of clustering algorithms.
Customer segmentation
Retail marketing teams, as well as business-to-customer organizations, are always trying to optimize their marketing spends. Marketing teams in particular are concerned with one specific metric called cost per acquisition (CPA). CPA is indicative of the amount that an organization needs to spend to acquire a single customer, and an optimal CPA means a better return on marketing investments. The best way to optimize CPA is via customer segmentation as this improves the effectiveness of marketing campaigns. Traditional customer segmentation takes standard customer features such as demographic, geographic, and social information...
