•1 min read•from Data Science
Clustering furniture business custumors
Our take
To effectively cluster customers for your furniture and decoration business, start by identifying key variables that influence purchasing behavior. Focus on both numerical and categorical data, ensuring you standardize numerical variables while encoding categorical ones using techniques such as one-hot encoding. When using k-means, remember that too many variables can dilute the results. Consider employing Principal Component Analysis (PCA) to reduce dimensionality and enhance clarity. By thoughtfully selecting and preparing your variables, you can unlock valuable insights into customer segments and preferences.
I have clients from a funiture/decoration selling business. with about the quarter online custumers. I have to do unsupervised clustering. do you have recommendations? how select my variables, how to handle categorical ones? Apparently I can t put only few variables in the k-means, so how to eliminate variables? Should I do a PCA?
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