E-Commerce Customer Segmentation: A Clustering Approach in A Web-Based Platform Manuscript Received: 22 November 2024, Accepted: 13 February 2025, Published: 15 March 2025, ORCiD: 0000-0001-6667-3011, https://doi.org/10.33093/jetap.2025.7.1.12
Main Article Content
Abstract
This study develops a K-means clustering model to segment e-commerce customers into distinct personality groups (e.g., Platinum, Gold, Silver, Bronze). The model utilizes a dataset encompassing customer demographics (income, age, family size), spending behavior (total expenditure, product preferences), customer tenure, and engagement with marketing campaigns (campaign responses). Model accuracy is evaluated through comparison of predicted cluster assignments to established customer segment characteristics. A web application, built with the Flask framework, provides an interactive interface allowing users to input new customer data for personalized predictions and detailed cluster-specific insights regarding product preferences, campaign responsiveness, and suggested marketing strategies. The application outputs cluster assignments, key spending/purchase tendencies, typical campaign response profiles within a respective segment, and prioritized product recommendations. Findings demonstrate the model's ability to effectively group customers with theoretical implications and suggests potential for improving targeted marketing campaigns. This work highlights the application of K-Means clustering with a practical online platform through an implemented web app for data visualization. Acknowledged limitations in the generalizability of the dataset to the entire customer base are addressed.
Article Details

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
I. D. Acheme and E. Enoyoze, "Customer Personality Analysis and Clustering for Targeted Marketing," Int. J. Sci. and Res. Arch., vol. 12, no. 1, pp. 3048–3057, 2024.
A. Abdulhafedh, "Incorporating K-means, Hierarchical Clustering, and PCA in Customer Segmentation," J. City and Develop., vol. 3, no. 1, pp. 12–30, 2021.
N. Boustani, A. Emrouznejad, R. Gholami, O. Despic, A. Ioannou, "Improving The Predictive Accuracy of The Cross-Selling of Consumer Loans Using Deep Learning Networks," Annals of Opera. Res., vol. 339, pp. 613–630, 2023.
K. Curran, S. Graham and C. Temple, "Advertising on Facebook," Int. J. E-Business Develop., vol. 1, no. 1, pp. 26–33, 2011.
S. Dolnicar, "Using Cluster Analysis for Market Segmentation: Typical Misconceptions, Established Methodological Weaknesses, and Some Recommendations for Improvement," Austral. J. Market Res., vol. 11, no. 2, pp. 5–12, 2003.
A. Hermes, and R. Riedl, "Influence of Personality Traits on Choice of Retail Purchasing Channel: Literature Review and Research Agenda," J. Theor. and Appl. Electron. Commer. Res., vol. 16, no. 7, pp. 3299–3320, 2021.
A. K. Jain, M. N. Murty and P. J. Flynn, "Data Clustering: A Review," ACM Comput. Surv., vol. 31, no. 3, pp. 264–323, 1999.
R. Kohavi, N. J. Rothleder and E. Simoudis, "Emerging Trends in Business Analytics," Commun. of the ACM, vol. 45, no. 8, pp. 45–48, 2002.
V. Kumar and B. Rajan, "Social Coupons as A Marketing Strategy: A Multifaceted Perspective," J. of the Academy of Market. Sci., vol. 40, no. 1, pp. 120–136, 2012.
K. N. Lemon and P. C. Verhoef, "Understanding Customer Experience Throughout The Customer Journey," J. Market., vol. 80, no. 6, pp. 69–96, 2016.
S. A. Neslin, S. Gupta, W. Kamakura, J. Lu and C. H. Mason, "Defection Detection: Measuring and Understanding The Predictive Accuracy of Customer Churn Models," J. Market. Res., vol. 43, no. 2, pp. 204–211, 2006.
G. Parthasarathy and S. Sathiya Devi, "Hybrid Recommendation System Based on Collaborative and Content-Based Filtering," Cybernet. and Syst., vol. 54, no. 4, pp. 432–453, 2023.
G. Punj and D. W. Stewart, "Cluster Analysis in Marketing Research: Review and Suggestions for Application," J. Market. Res., vol. 20, no. 2, pp. 134–148, 1983.
R. T. Rust and M. H. Huang, "The Service Revolution and The Transformation of Marketing Science," Market. Sci., vol. 33, no. 2, pp. 206–221, 2014.
W. R. Smith, "Product Differentiation and Market Segmentation as Alternative Marketing Strategies," J. Market., vol. 21, no. 1, pp. 3–8, 1956.
P. C. Verhoef, P. K. Kannan and J. J. Inman, "From Multi-channel Retailing to Omni-channel Retailing: Introduction to The Special Issue on Multi-channel Retailing," J. Retail., vol. 91, no. 2, pp. 174–181, 2015.
D. Xu, Y. Tian and S. Abidi, "A Comprehensive Survey of Clustering Algorithms," Annals of Data Sci., vol. 2, no. 2, pp. 165–193, 2015.
J. Zhang and M. Wedel, "The Effectiveness of Customized Promotions in Online and Offline Stores," J. Market. Res., vol. 46, no. 2, pp. 190–206, 2009.
Y. Zhang and M. Trusov, "Exploring The Value of Online Product Reviews in Forecasting Sales: The Case of Motion Pictures," J. Market., vol. 82, no. 4, pp. 1–20, 2018.
H. Ziafat and M. Shakeri, "Using Data Mining Techniques in Customer Segmentation," J. Eng. Res. and Appl., vol. 4, no. 9, pp. 70–79, 2014.