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The Art of Data-Driven Business

You're reading from   The Art of Data-Driven Business Transform your organization into a data-driven one with the power of Python machine learning

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Product type Paperback
Published in Dec 2022
Publisher Packt
ISBN-13 9781804611036
Length 314 pages
Edition 1st Edition
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Author (1):
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Alan Bernardo Palacio Alan Bernardo Palacio
Author Profile Icon Alan Bernardo Palacio
Alan Bernardo Palacio
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Table of Contents (17) Chapters Close

Preface 1. Part 1: Data Analytics and Forecasting with Python
2. Chapter 1: Analyzing and Visualizing Data with Python FREE CHAPTER 3. Chapter 2: Using Machine Learning in Business Operations 4. Part 2: Market and Customer Insights
5. Chapter 3: Finding Business Opportunities with Market Insights 6. Chapter 4: Understanding Customer Preferences with Conjoint Analysis 7. Chapter 5: Selecting the Optimal Price with Price Demand Elasticity 8. Chapter 6: Product Recommendation 9. Part 3: Operation and Pricing Optimization
10. Chapter 7: Predicting Customer Churn 11. Chapter 8: Grouping Users with Customer Segmentation 12. Chapter 9: Using Historical Markdown Data to Predict Sales 13. Chapter 10: Web Analytics Optimization 14. Chapter 11: Creating a Data-Driven Culture in Business 15. Index 16. Other Books You May Enjoy

Understanding clusters as customer segments

To rigorously evaluate the output obtained, we need to evaluate the depicted clusters. This is because clustering is an unsupervised method and the patterns extracted should always reflect reality, otherwise; we might just as well be analyzing noise.

Common traits among consumer groups can help a business choose which items or services to advertise to which segments and how to market to each one.

To do that, we will use exploratory data analysis (EDA) to look at the data in the context of clusters and make judgments. Here are the steps:

  1. Let us first examine the clustering group distribution:
    cluster_count = PCA_ds["Clusters"].value_counts().reset_index()
    cluster_count.columns  = ['cluster','count']
    f, ax = plt.subplots(figsize=(10, 6))
    fig = sns.barplot(x="cluster", y="count", palette=['red','blue','green','orange'],data=cluster_count...
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