Question 109 - MLS-C01 discussion

Clustering is a machine learning technique that can group data points into clusters based on their similarity or proximity. Clustering can help discover the underlying structure and patterns in the data, as well as identify outliers or anomalies. Clustering can also be used for customer segmentation, which is the process of dividing customers into groups based on their characteristics, behaviors, preferences, or needs. Customer segmentation can help understand the key features and needs of different customer segments, as well as design and implement targeted marketing campaigns for each segment. In this case, the Marketing Manager at a pet insurance company plans to launch a targeted marketing campaign on social media to acquire new customers. To do this, the Manager can use clustering on customer profile data to understand the key characteristics of consumer segments, such as their demographics, pet types, policy preferences, premiums paid, claims made, etc. The Manager can then find similar profiles on social media, such as Facebook, Twitter, Instagram, etc., by using the cluster features as filters or keywords. The Manager can then target these potential new customers with personalized and relevant ads or offers that match their segment's needs and interests. This way, the Manager can implement a machine learning model to identify potential new customers on social media.