K-Medoid Clustering (PAM)Algorithm in Python

Clustering of large-scale data is key to implementing segmentation-based algorithms. Segmentation can include identifying customer groups to facilitate targeted marketing, identifying prescriber groups to allow health care players to reach out to them with the right messaging, and identifying patterns or abnormal values in the data. K-Means is the most popular clustering algorithm adopted across different problem areas, mostly owing to its computational efficiency and ease of understanding the algorithm. K-Means relies on identifying cluster centers from the data. It alternates between assigning points to these cluster centers using the Euclidean distance metric and recomputes the cluster centers till a convergence criterion is achieved.