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Wojciech Gryc's Blog – September 2013 Archive (1)

Building customer segments using Principle Component Analysis (PCA)

A very common approach to building and understanding customer segments is through the use of clustering techniques such as Principle Components Analysis (PCA). These clustering techniques will analyze your customer data and see if customers tend to cluster by certain features, or combinations of features. Through such an approach, a marketer can use clusters to define specific segments. For example, running a cluster analysis could end up showing two clusters: one with customers who have…

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Added by Wojciech Gryc on September 26, 2013 at 11:41am — 1 Comment

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