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Project 4: Customer Segmentation

We'll apply unsupervised learning to discover natural groupings within the customer base through behavioral clustering. Our process begins with feature scaling to ensure all variables contribute equally to the distance-based calculations required for the k-means algorithm. We'll utilize the elbow method to mathematically determine the optimal number of clusters and then execute the clustering process to assign every customer to a specific segment. To interpret these high-dimensional groups, we'll apply Principal Component Analysis for 2D visualization and profile each segment to create actionable customer personas for personalized engagement strategies.