Data Analytics · Customer Analytics · ML

E-Commerce Customer Analytics & RFM Segmentation

Analyzed 500K+ e-commerce transaction records, cleaned the data in Python, generated a customer-level RFM dataset, calculated RFM scores, and performed K-Means customer segmentation.

Problem Statement

E-commerce businesses generate massive transactional data, but raw transactions don't directly tell you which customers are most valuable, which are slipping away, and how to prioritize retention efforts. This project transforms raw transactions into customer-level insights using RFM (Recency, Frequency, Monetary) analysis and K-Means clustering.

Business Objectives

  • Clean and validate 500K+ transaction records
  • Build a customer-level RFM dataset
  • Calculate Recency, Frequency, and Monetary scores
  • Apply K-Means clustering to segment customers
  • Visualize sales performance and customer value in Power BI
  • Translate segments into actionable business recommendations

Analytical Workflow

Raw Data→ Data Cleaning→ RFM Analysis→ RFM Scoring→ K-Means Clustering→ Customer Segmentation→ Power BI Dashboards

Customer Segments Identified

VIP ChampionsHighest value, most engaged
High-Value LoyalStrong repeat customers
Regular CustomerSteady, moderate value
Lost / Low ValueAt-risk or inactive

Technologies Used

PythonPandasNumPyMatplotlib Scikit-learnK-MeansPower BIDAX

Dashboards

Click either card to open the actual dashboard screenshot in the repository.

Business Value

RFM segmentation allows marketing and retention teams to move away from one-size-fits-all campaigns and instead target the right customers with the right strategy — reward VIP Champions, re-engage High-Value Loyal, nurture Regulars, and design win-back offers for Lost customers.

Note: Specific sales figures or segment percentages are not included here because they were not part of the verified project brief.

Project Resources