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Decoding Customer Behavior: A Step-by-Step Guide to RFM Analysis and K-Means Clustering

Why Your Business Needs Customer Segmentation Imagine trying to sell winter coats to beachgoers in July. Without understanding customer behavior, even the best marketing efforts fall flat. Customer segmentation solves this by grouping shoppers based on their actions—not guesswork. In this walkthrough, we’ll use accurate transaction data to reveal how RFM analysis and K-means clustering uncover hidden patterns in your customer base.