Beginner's Guide to Customer Segmentation

This post originally appeared on the Yhat blog. Yhat is a Brooklyn based company whose goal is to make data science applicable for developers, data scientists, and businesses alike. Yhat provides a software platform for deploying and managing predictive algorithms as REST APIs, while eliminating the painful engineering obstacles associated with production environments like testing, versioning, scaling and security. In this post, I'll detail how you can use K-Means clustering to help with some of the exploratory aspects of customer segmentation. I'll be walking through the example using Yhat's own Python IDE, Rodeo, which you can download for Windows, Mac or Linux here.