Analysis Of Customers’ Shopping Behaviour By Segmenting Customers Using K-Means Clustering Approach

Abstract

In all trading areas today, e-commerce has become popular and most implementable method. E-commerce means promoting and marketing products to customers’ electronically. Segmenting customers means dividing them into groups which share same features. The main reason of segmenting the customers is to analyse their shopping behaviour and suggesting ways to increase the profit to the business. Customers’ segmentation is done to assist business to find out the customers who are profitable to the business and how to increase the sales to the business. In this study, k-means clustering approach is used to analyse customers’ shopping behaviour by segmenting them in clusters. The aim of using clustering method is to find out shopping behaviour pattern within the clusters. In this research, the recommended approach investigated the similar groups and their preferences which will help business to increase profits. It also facilitates to provide different offers to the potential customers in order to achieve long term sales and profits.