<![CDATA[Transaction logs in online retail provide opportunities for data-driven customer segmentation. This study segments customers at two scopes global (all countries) and United Kingdom (UK) using Recency, Frequency, and Monetary (RFM) features derived from the Online Retail transaction dataset. After cleaning cancellations and invalid records, RFM variables are computed per customer and normalized. K-Means clustering is applied separately for global and UK data, while the number of clusters is selected via the elbow criterion and validated using internal indices. The best configuration for both scopes yields five clusters, with moderate separation quality based on the silhouette score. Cluster profiling indicates distinct groups ranging from low-frequency low-spending customers to highly frequent high-spending customers. The comparison between global and UK segmentation shows similar structural patterns, yet different proportions across segments, supporting targeted retention and value-driven marketing actions.]]>
Copyrights © 2025
