ANALYSIS AND VISUALIZATION OF MARKET SEGEMENTATION IN BANKING SECTOR USING KMEANS MACHINE LEARNING ALGORITHM
DOI:
https://doi.org/10.33003/fjs-2022-0601-910Keywords:
Clustering, Data visualization, K-means Algorithm, market segmentationAbstract
Segmentation is a way of assigning each dataset to a segment called cluster. It is widely applied in different area of human endeavor such as banking sector, health sector, retail, media etc. Many organizations are faced with problems of ineffective customer care services and intelligent management decisions because of inability to effectively analyze customer data that will give insight to the nature of customers to help in effective customer services and intelligent management decision. Kmeans algorithm is the widely used algorithm for market segmentation, normally the k value of Kmeans algorithm are randomly picked. Picking the optimal k value is usually a challenge in application of Kmeans algorithm and this usually affects the performance of Kmeans algorithm. This work applies elbow method to obtain the optimal k value that was applied to analyze dataset from banking sector (in this case United Bank of Africa) for better insight, business management and marketing strategy. The customer cluster created was evaluated using visual plots and cluster centers. The optimal k value of six (6) was obtained using the elbow function. The dataset was thus segmented based on the optimal k value of 6 obtained. The clustering results obtained showed high intra cluster similarity (data within a cluster are similar) and low inter cluster similarity (data from different clusters are dissimilar). The result also showed that customers in cluster 3 and 4 has similar marketing needs and can be served together
References
Abdullahi, N., Igwe, E. C., Dandago, M. A., & Umar, N. B. (2021). Heavy Metals in Food Crops: Ideal Sources and Roles of Urban Agriculture in Facilitating Their Consumption- a Review. Fudma Journal of Sciences, 5(2), 34–45. https://doi.org/10.33003/fjs-2021-0502-520
Adamu, j., Olanite, O. A., & Yunusa, A. (2022). Groundwater Potential Investigation using 1-D Electrical Resistivity Technique at Niger State Polytechnic Zungeru, Zungeru main Campus, Niger State, Nigeria. Fudma journal of sciences, 5(4), 392 - 399. https://doi.org/10.33003/fjs-2021-0504-825
Aondoakaa, and Agbakwuru. 2012. “An Assessment of Land Suitability for Rice Cultivation in Dobigwagwalada Area Council, Fct Nigeria.†Ethiopian Journal of Environmental Studies and Management EJESM 5(4).
APHA, American Public Health Association. 1980. Standard Methods for Examination of Water and Waste. 15th ed. New York.
Aprol, I, J Yadav, and F Massoud. 1988. “Salt Affected Soils and Their Management.†Food and Agriculture Orgaization Of The United Nations M-53(ISBN 92-5-102686-6).
Arsham, M., B. Lowery, and B. Grossman. 1996. “Physical Tests for Monitoring Soil Quality.†Methods for assessing soil quality: 123–42.
AWWA, American Water Works Association. 1975. “Simplified Proocedures for Water Examinations. WWA, Denver. USDA. ARS, National Soil Tilth Laboratory, 2150 Pammel IA 50011.â€
Bernstein, Leon. 1975. “Effects of Salinity and Sodicity on Plant Growth.†(74).
Chhabra, R. 2002. “Salt-Affected Soils and Their Management for Sustainable Rice Production - Key Management Issues : A Review.†23(2): 110–26.
El Mahi, Y., I.S. Ibrahim, H. M. A. and A. M., Eltilib. (1987). A simple method for determination of calcium and magnesium carbonate in soils. Soil Sci. Soc. Am. J., 51, 1152–1155.
FAO. 2005. “Salt-Affected Soils from Sea Water Intrusion.†Strategies for Rehabilitation and Management: 62.
Garuba, H. S., Mukhtar, M. K., Ugama, G. N., Jamila, A., Aliyu, M. K., & Yahaya, G. (2021). Evaluation of Rainfall Trends due to Climate Change: A case study of Samaru, Zaria. Fudma Journal of Sciences, 5(4), 205–209.
Gregory, Peter J. 2013. Soil Conditions and Plant Growth. New York: Wiley-Blackwell.
Hanson, Blaine R, and Stephen R Grattan. 2006. “Agricultural Salinity and Drainage.â€
Horneck, D A, D M Sullivan, J S Owen, and J M Hart. 2011. “Soil Test Interpretation Guide.â€
Igbadun, H.E., A.A. Rammalan, and E. Oiganji. 2012. “Effects of Regulated Deficit Irrigation and Mulch on Yield, Water Use and Crop Water Productivity Onion in Samaru, Nigeria.†Journal of Agricultural Water Management.
Kassu, T., Tilahun, H., Yared, D., & Watanabe, H. (2017). Effect of irrigation regimes on yield and water use efficiencies of potato. Fudma Journal of Sciences, 11(3), 389–406. https://doi.org/10.22069/ijpp.2017.3547
Lawal, A. R., Olayinka, B. U., Etejere, E. O., & Abdulra’uf L, B. (2021). Effect of Weed Control Strategies on Proximate Composition of Maize, Cowpea, and their Intercrop. Fudma Journal of Sciences. 5(4), 6
McCauley, Ann, and Clain Jones. 2005. “Soil & Water Management Module 2 Salinity & Sodicity Management.†: 1–16.
Nasidi, N. M., Wayayok, A., Sani, K. M., Shanono, N. J. and Zakari, M. D. 2018. Reclamation of Irrigated Sodic Soil using Millet Chaff as an Amendment. In: 4th International Conference on Agricultural and Food Engineering (CAFEi 2018), 7-9 Nov. 2018, The Everly Putrajaya Hotel, Malaysia. (pp. 62-73).
Nasidi, N. M., N. J. Shanono, M. D. Zakari, Ibrahim, A. and M. M. Bello. 2015. “Reclaiming Salt-Affected Soil for the Production of Tomato at Barwa-Minjibir Irrigation Scheme Kano.†In 1st International Conference on Green Engineering for Sustainable Development, Bayero University, Kano. Pp260-264.
Oliver, D P et al. 2013. “Review : Soil Physical and Chemical Properties as Indicators.†(March 2018).
Quirk, J. P. (2001). The Significance of the Threshold and Turbidity Concentrations in Relation to Sodicity and Microstructure. Australian Journal of Soil Research, 39, 1185–1217.
Roy, R.N., Finck, A., Blair, G.J. and Tandon, H.L.S. 2006. Plant nutrition for food security: A guide for integrated nutrient management. Fao fertilizer and plant nutrition bulletin 16. Food and agriculture organization of the united nations Rome. Pp42-44.
Schoonover, Jon E, and Jackie F Crim. 2015. An Introduction to Soil Concepts and the Role of Soils in Watershed Management.â€
Shainberg, I., and J. Letey. 1984. “Response of Soils to Sodic and Saline Conditions.†52(2).
Shanono, N.J., M.K. Othman, and N.M. Nasidi. 2012. “Evaluation of Soil and Water Quality of Watari Irrigation Project.†Nigerian Institute of Agricultural Engineering. 43rd Conference held in Bauchi State of Nigeria: 175.
Sumner, M. E. (1993). Sodic soils: New perspectives. Australian Journal of Soil Reserch, 683–750s
Udo, E. J., Ibia, T. O., Ogunwale, J. A., Esu., A. O., and Ano, I. E. (2009). Manual of Soil Plant and Water Analyses. First Publication Sibon Books Ltd. Lagos, Nigeria.
Published
How to Cite
Issue
Section
FUDMA Journal of Sciences
