A

Mini Project Report On

COUSTOMER SEGMENTATION
Submitted in partial fulfilment of the requirement of the University of Mumbai
for the Degree of Bachelor of Engineering

(Computer Engineering)

By

Pratiksha Ahire
Mrunali Shelar

Under the guidance of

Prof. Prachi Gadhire

Department of Computer Engineering

Suman Educational Trust’s
Dilkap Research Institute of Engineering & Management Studies
Mamdapur, Post:Neral, Taluka:Karjat, Dist:Raigad-410101
University of Mumbai
 ACADEMIC YEAR 2022-2023

Dilkap Research Institute of Engineering & Management Studies

Department of Computer Engineering

Academic Year 2022-2023

CERTIFICATE

This is to certify that

Ms.Pratiksha Ahire,

Ms.Mrunali Shelar,

Sem.VII, BE Computer, Roll No: 01,58,39 has satisfactorily completed the requirements of the
Mini Project entitled

"Blood Bank Management System"

As prescribed by the University of Mumbai Under the guidance of

Prof.Prachi Gadhire

Guide HOD

(Prof. Prachi Gadhire) (Prof. Indira Joshi)

Internal Examiner External Examiner

 ABSTRACT

Customer segmentation and pattern extraction is one of the key aspects of

business decision support system. In order to grow the business intelligently in
competitive market, identification of potential customer should be done timely.
This project proposes an approach for determining target customers using
predictive model and also discover their associative buying patterns by displaying
it using k means clustering algorithm . After identification of targeted customers
and their associative buying pattern, the business managers take the strategic
profitable decisions accordingly.
The objective of this proposed system is to develop an application which will
predict the set of people to be targeted based on their purchasing capacity. So, a
company can decide the right set of people to show the product. This project will
try to predict the set of customer that have a higher chances of buying product
base on their behavior.
 INTRODUCTION

Sometimes referred to as market segmentation, customer segmentation is a

method of analysing a client base and grouping customers into categories
or segments which share particular attributes. Key differentials in
segmentation include age, gender, education, location, spending patterns
and socio-economic group. Relevant differentials are those which are
expected to influence customer behaviour in relation to a business. The
selected criteria are used to create customer segments with similar values,
needs and wants.
When planning a targeted marketing campaign, it is also necessary to
differentiate customers within these groupings according to their preferred
means of communication.

Customer segmentation is an essential tool in customer relationship

management, enabling businesses to market effectively to their
customers. Businesses are expected to understand their customers and
demonstrate their customer insights by sending only relevant, targeted
communications to their customers. Customers want to feel valued and be
treated as individuals, yet for anything other than perhaps the smallest of
businesses this level of customer knowledge is impossible to achieve.

Segmentation also allows businesses to channel their resources

appropriately. High value customers who purchase frequently and generate
more revenue usually belong in a segment which is allocated a higher level
of marketing spend.

Analysing customer demographics and psychographics gives layers of

insights which help anticipate customers’ needs and plan new products and
services. This in turn enables marketeers to target more accurately those
customers or prospects who would be most interested in them.
 REQUIREMENT

1.Functional Requirement

● The data representing customer behaviour is to be provided .

● with the machine accuracy.

● The program will be able to produce multiple cluster and different

was of assessing the customer .
● The program will be able to choose the right set of customer to be targeted based on
the input s.

● There is a way to tackle each customer as per requirement .

2.Non-Functional Requirement

● Usability: The user is facilitated with the control section for the entire process

in which they can put in the customer data under consideration, the data is
similar to wicha the model is constructed command generation etc. can be
effectively facilitated by mean of user interface
The data is similar to previous data given then there is no problem the user
has to just feed the new data and run the program to obtain the result.

● Security and support: Application will be permissible to be used only in secure

network so there is less feasibility of insecurity over the functionality of the
application. On the other hand, the program recides in the user machine and can
easily protect it by pc security .

● Maintainability: The installation and operation manual of the project

will be provided to the user.

● Extensibility: The project work is also open for any future

modification and hence the work could be define as the one of the
extensible work.
 SYSTEM DESIGN

Design is a meaningful engineering representation of something that

is to be built. It is the most crucial phase in the developments of a
system. Software design is a process through which the requirements
are translated into a representation of software. Design is a place
where design is fostered in software Engineering. Based on the user
requirements and the detailed analysis of the existing system, the new
system must be designed. This is the phase of system designing.
Design is the perfect way to accurately translate a customer’s
requirement in the finished software product. Design creates a
representation or model, provides details about software data
structure, architecture, interfaces and components that are necessary
to implement a system. The logical system design arrived at because
of systems analysis is converted into physical system design.
 Fig 5.1 Waterfall Model

DATA FLOW DIAGRAM

The DFD is also called as bubble chart. It is a simple graphical
formalism that can be used to represent a system in terms of the input
data to the system, various processing carried out on these data, and
the output data is generate by the system.

FIG.DATAFLOW DIAGRAM
 USE CASE DIAGRAM
A use case defines a goal-oriented set of interactions between
external entities and the system under consideration. The external
entities, which interact with the system, are its actors. A set of use
cases describe the complete functionality of the system at a particular
level of detail and the use case diagram can graphically denote it.

A use case diagram at its simplest is a representation of a user's

interaction with the system that shows the relationship between the
user and the different use cases in which the user is involved. A use
case diagram can identify the different types of users of a system
and the different use cases and will often be accompanied by other
types of diagrams as well.

Fig .Use Case Diagram

 RESULTS AND DISCUSSIONS

Here in the project we have obtained the different cluster based on the salary
and there spending score. Different colors are used to identify different
cluster which shows different behavior .
cluster 1 the people in this cluster have a good salary but
doesn’t prefer buying cluster 2 the people in this cluster have a
low salary but doesn’t prefer buying . cluster 3 the people in this
cluster have a good salary and also prefer buying cluster 4 the
people in this cluster have a low salary and still prefer buying.
cluster 5 the people in this cluster have an average salary and also can’t
buy costly but mediocre things .

Customer segmentation has highly improved the performance of

different businesses over the years, the fact that the consumer
platform is changing dramatically has proven to be a headache for
various businesses. That’s why segmenting the customers into
different groups has some incredible benefits for improving the
market results
Proposed System Implementation Code
import pandas as pd
import NumPy as
np
import matplotlib.pyplot as plt
from sklearn.cluster import KMean
# Read the dataset

df =pd.read_csv(r'C:\Users\tarun saini\Desktop\Mall_Customers.csv')
df

df.shape

x = df.Income

y = df.SpendingScore

plt.scatter(x,y)

plt.show()
x = df.iloc[:, [3,4]].values

# Using the elbow method to find the optimal number of clusters

ls = []

for i in range(1,11):

km = KMeans(n_clusters = i)

km.fit(x)

ls.append(km.inertia_) # Sum of squared distances of samples to their closest cluster center

 plt.plot(range(1,11), ls)

plt.title('The Elbow Method')

plt.xlabel('Number of clusters')

plt.ylabel('SSE')

plt.show()

ls

# Fitting K-Means to the dataset

km = KMeans(n_clusters =5)

y_kmeans = km.fit_predict(x)
# Visualising the cluster

plt.scatter(x[y_kmeans == 0 , 0], x[y_kmeans == 0, 1], s = 50, c = 'red', label =

'Cluster 1') # Variable as two values,

# first zero is cluster 0 and second 0 is Income 1 is SpendingScore

plt.scatter(x[y_kmeans == 1 , 0], x[y_kmeans == 1, 1], s = 50, c = 'blue', label =

'Cluster 2')

plt.scatter(x[y_kmeans == 2 , 0], x[y_kmeans == 2, 1], s = 50, c = 'green', label

= 'Cluster 3')

plt.scatter(x[y_kmeans == 3 , 0], x[y_kmeans == 3, 1], s = 50, c = 'cyan', label =

'Cluster 4')

plt.scatter(x[y_kmeans == 4 , 0], x[y_kmeans == 4, 1], s = 50, c = 'magenta',

label = 'Cluster 5')

plt.scatter(km.cluster_centers_[,0], km.cluster_centers_[:1], s = 100, c

='yellow', label = 'Centroids')

plt.title('Clusters of Customer')

plt.xlabel('Annual Income (k$)')

plt.ylabel('Spending Score (1-100)')

plt.legend()
SCRRENSHOT :

Fig 7.1 data representation on a xy plane

Fig 7.2 Elbow method

Fig 7.3 clusters formed .
 CONCLUSION
Customer segmentation is a way to improve communication with
the customer, to know the wishes of the customer, customer
activity so that appropriate communication can be built. Customer
Segmentation needed to get potential customers used to increase
profits. Potential customer data can be used to provide service the
characteristics of customer including ecommerce services as a
media buying and selling online. This paper discusses several
components to do customer segmentation, which is: Customer
segmentation is an activity to divide customers or item into
groups that have the same characteristics. Data that needed for
customer segmentation are internal data and external data. The
internal data include demographic data and data purchase history,
while the external data include cookies and server logs. Internal data
can be obtained from a database when customer do registration
or transactions and external data can be obtained from web server
or other source. Methods of Customer Segmentation can be
classified into Simple technique, RFM technique, Target
technique, and Unsupervised technique. On Target technique,
researcher focus on one variable, it can be product or purchase.
Unsupervised technique was used when clustering process reseacher
have many variable Process of Customer Segmentation can be
simplified into defining business objective, collecting data, data
preparation, analyzing var