Mastering Hierarchical Clustering: Scalable Customer Segmentation
Introduction Ever wondered how businesses can efficiently categorize thousands of customers into distinct groups for targeted marketing? Hierarchical clustering is the answer. In today's data-driven world, companies are inundated with vast amounts of information. Efficiently grouping similar data points in scalable systems can significantly enhance operations, especially in applications like customer segmentation. This technique not only helps in identifying patterns but also drives strategic decisions. Understanding hierarchical clustering and its applications can be a game-changer for businesses aiming to leverage big data for improved customer insights. Body Section 1: Background or Context Hierarchical clustering is a method of cluster analysis which seeks to build a hierarchy of clusters. It is particularly useful for large datasets, where grouping similar data points can reveal significant insights. This method can be agglomerative (bottom-up) or divisive (top-down). What i...