Customer Segmentation

Customer segmentation aims to group customers into distinct segments based on shared characteristics to optimize marketing strategies and personalize customer experiences. Current research emphasizes leveraging advanced algorithms, including clustering techniques like K-means and Gaussian Mixture Models, and incorporating multimodal data (textual and numerical) through methods such as language model fine-tuning, to achieve more nuanced and accurate segmentation. This refined approach improves the effectiveness of targeted marketing campaigns, enhances customer retention, and contributes to increased profitability across various sectors, from retail to finance.