Introduction

The goal of this analysis was to identify different user groups based on the deals they have availed, using a discount app, in order to re-target them with offers similar to ones they have availed in the past.

Machine learning algorithm K-means was used to identify user segments based on their purchase behavior. Here is a 3-D illustration of what algorithm extracted.

3D image of clusters produced by K-Means, by Muffaddal

Terminologies:

Before going deeper into the analysis, let’s define some keywords being used.

_Deal Avail: _When user avails discount using app.

Spent:_ Discounted price user pays while buying an item._

Saved:_ Amount user saved through the app._

_Brands: _Vendors for which discounts are being offered such as Pizza Hut, GreenO

_Deals: _Discounts offered to users on different outlets and brands.

Analysis

Data sets

The behavior data set was extracted from Mixpanel using JQL. Following was used for this analysis

#k-means-clustering #clustering #machine-learning #marketing #segmentation #deep learning