The clustering analysis on credit card data to develop customer segmentation and to define marketing strategy Edwisor 1.1 Problem Statement
This case requires trainees to develop a customer segmentation to define
marketing strategy. The sample dataset summarizes the usage behaviour of about
9000 active credit card holders during the last 6 months. The file is at a customer
level with 18 behavioural variables. I found that there are four types of purchase
behaviour so I decided to cluster based on their purchase behaviour.

CASH_ADVANCE
PURCHASES_
FREQUENCY
ONEOFF_PURCHASES
FREQUENCY
PURCHASES_INSTALL
MENTS_FREQUENCY
CASH_ADVANCE
FREQUENCY
CASH_ADVANCE
TRX
PURCHASES
TRX

The variable present in this data are The details of variable present in the dataset are as follows – Number of attributes: ● CUST_ID -Credit card holder ID
● BALANCE Monthly average balance (based on daily balance averages)
● BALANCE_FREQUENCY Ratio of last 12 months with balance
● PURCHASES Total purchase amount spent during last 12 months
● ONEOFF_PURCHASES Total amount of one-off purchases
● INSTALLMENTS_PURCHASES Total amount of installment purchases
● CASH_ADVANCE Total cash-advance amount
● PURCHASES_ FREQUENCY-Frequency of purchases (percentage of months with at least on purchase)
● ONEOFF_PURCHASES_FREQUENCY Frequency of one-off-purchases
● PURCHASES_INSTALLMENTS_FREQUENCY Frequency of installment
● CASH_ADVANCE_ FREQUENCY Cash-Advance frequency
● AVERAGE_PURCHASE_TRX Average amount per purchase transaction
● CASH_ADVANCE_TRX Average amount per cash-advance transaction
CUST_ID BALANCE BALANCE_FREQUENCY PURCHASES ONEOFF_PURCHASES INSTALLMENTS_PURCHASES CASH_ADVANCE PURCHASES_FREQUENCY ONEOFF_PURCHASES_FREQ UENCY PURCHASES_INSTALLMENTS _FREQUENCY CASH_ADVANCE_FREQUENC Y CASH_ADVANCE_TRX PURCHASES_TRX CREDIT_LIMIT PAYMENTS MINIMUM_PAYMENTS PRC_FULL_PAYMENT TENURE 5 ● PURCHASES_TRX Average amount per purchase transaction ● CREDIT_LIMIT Credit limit ● PAYMENTS - Total payments (due amount paid by the customer to decrease their statement balance) in the period ● MINIMUM_PAYMENTS - Total minimum payments due in the period. ● PRC_FULL_PAYMENT - Percentage of months with full payment of the due statement balance ● TENURE - Number of months as a customer Evaluation B