Behavioral Clustering categorizes individuals according to their behaviors and preferences, assisting businesses in crafting personalized marketing and product strategies. Utilizing unsupervised models for clustering customers based on their interactions, purchase history, and engagement patterns, this approach identifies shared characteristics among them.
This segmentation reduces churn rates, improves retention, enhances targeted marketing, and predicts future trends. The method supports efficient resource allocation by identifying lucrative customer segments, promoting customer satisfaction and loyalty.