Approaches to Customer Segmentation as a Function of STP Framework ...

—STP (Segmentation, Targeting, and Positioning) has long been used as a marketing framework to assist businesses better understand who their ideal consumers are and how to approach them.The primary premise of this framework is that you should categorise your clients, target each group based on their preferences and habits, and tailor your branding and marketing techniques to fit their needs and expectations. The relevance of customer segmentation as a key function of STP is examined in this article, as well as a variety of ways for segmenting customers using clustering algorithms. Customer segmentation is the practise of grouping customers who have similar behaviours into one group and grouping customers who have distinct patterns into other groups. Two alternative cluster- ing algorithms (k-Means and hierarchical) are implemented to segment customers in this study, and the results are compared. A Python programme was created, and it was trained on a dataset with eight features and 2000 training ...