OKHAMENA AZEEZ KEHINDE

Market analysis has evolved significantly over the years, with customer profiling and segmentation playing a pivotal role in understanding and catering to diverse consumer needs. One powerful approach to customer segmentation involves the combined use of Exploratory Data Analysis (EDA) and K-means clustering. EDA, encompassing univariate, bivariate, and multivariate analyses, allows for a comprehensive examination of customer data, while K-means clustering assists in identifying distinct customer segments based on similarities in various profiling variables. This study employs Exploratory Data Analysis, encompassing univariate, bivariate, and multivariate analyses, to gain profound insights into customer demographics. The initial analysis revealed that a substantial portion of the customer base falls within the age range of 41 to 60 years, possesses first-degree qualifications, and is predominantly married, constituting approximately 65% of the sample. Additionally, income distribution exhibited a diverse pattern, with the majority earning between 0 to 100k$, but a noteworthy proportion having incomes exceeding 600k$. The bivariate analysis further unveiled intriguing insights, particularly in terms of spending patterns linked to educational backgrounds. Employing K-means clustering on the customer profiling variables, this study successfully identified three distinctive customer clusters. These clusters were characterized as follows: the first cluster comprised low earners with corresponding low spending tendencies, the second cluster consisted of moderate earners exhibiting moderate spending habits, and the third cluster encompassed high earners known for their high spending behaviors. The integration of EDA and K-means clustering in this analysis provides valuable information for targeted marketing and sales strategies. By recognizing these distinct customer segments, businesses can tailor their approaches to cater to the specific needs and preferences of each group, thus enhancing their market competitiveness and overall success.