#Importing the Libraries

import numpy as np
import pandas as pd
import datetime
import matplotlib
import matplotlib.pyplot as plt
from matplotlib import colors
import seaborn as sns
from sklearn.preprocessing import LabelEncoder
from sklearn.preprocessing import StandardScaler
from sklearn.decomposition import PCA
from yellowbrick.cluster import KElbowVisualizer
from sklearn.cluster import KMeans
import matplotlib.pyplot as plt, numpy as np
from mpl_toolkits.mplot3d import Axes3D
from sklearn.cluster import AgglomerativeClustering
from matplotlib.colors import ListedColormap
from sklearn import metrics
import warnings
import sys
if not sys.warnoptions:
warnings.simplefilter("ignore")
np.random.seed(42)

LOADING DATA
#Loading the dataset
data = pd.read_csv("marketing_campaign.csv", sep="\t")
print("Number of datapoints:", len(data))
data.head()

Number of datapoints: 2240

ID Year_Birth Education Marital_Status Income Kidhome

Teenhome \
0 5524 1957 Graduation Single 58138.0 0
0
1 2174 1954 Graduation Single 46344.0 1
1
2 4141 1965 Graduation Together 71613.0 0
0
3 6182 1984 Graduation Together 26646.0 1
0
4 5324 1981 PhD Married 58293.0 1
0

Dt_Customer Recency MntWines ... NumWebVisitsMonth AcceptedCmp3

\
0 04-09-2012 58 635 ... 7 0

1 08-03-2014 38 11 ... 5 0

2 21-08-2013 26 426 ... 4 0

3 10-02-2014 26 11 ... 6 0

4 19-01-2014 94 173 ... 5 0

AcceptedCmp4 AcceptedCmp5 AcceptedCmp1 AcceptedCmp2 Complain \

0 0 0 0 0 0
1 0 0 0 0 0
2 0 0 0 0 0
3 0 0 0 0 0
4 0 0 0 0 0

Z_CostContact Z_Revenue Response

0 3 11 1
1 3 11 0
2 3 11 0
3 3 11 0
4 3 11 0

[5 rows x 29 columns]

For more information on the attributes visit here.

DATA CLEANING
In this section
• Data Cleaning
• Feature Engineering
In order to, get a full grasp of what steps should I be taking to clean the dataset. Let us have
a look at the information in data.
#Information on features
data.info()

<class 'pandas.core.frame.DataFrame'>
RangeIndex: 2240 entries, 0 to 2239
Data columns (total 29 columns):
# Column Non-Null Count Dtype
--- ------ -------------- -----
0 ID 2240 non-null int64
1 Year_Birth 2240 non-null int64
2 Education 2240 non-null object
3 Marital_Status 2240 non-null object
4 Income 2216 non-null float64
5 Kidhome 2240 non-null int64
6 Teenhome 2240 non-null int64
7 Dt_Customer 2240 non-null object
8 Recency 2240 non-null int64
9 MntWines 2240 non-null int64
10 MntFruits 2240 non-null int64
11 MntMeatProducts 2240 non-null int64
12 MntFishProducts 2240 non-null int64
13 MntSweetProducts 2240 non-null int64
14 MntGoldProds 2240 non-null int64
15 NumDealsPurchases 2240 non-null int64
16 NumWebPurchases 2240 non-null int64
17 NumCatalogPurchases 2240 non-null int64
18 NumStorePurchases 2240 non-null int64
19 NumWebVisitsMonth 2240 non-null int64
20 AcceptedCmp3 2240 non-null int64
21 AcceptedCmp4 2240 non-null int64
22 AcceptedCmp5 2240 non-null int64
23 AcceptedCmp1 2240 non-null int64
24 AcceptedCmp2 2240 non-null int64
25 Complain 2240 non-null int64
26 Z_CostContact 2240 non-null int64
27 Z_Revenue 2240 non-null int64
28 Response 2240 non-null int64
dtypes: float64(1), int64(25), object(3)
memory usage: 507.6+ KB

From the above output, we can conclude and note that:

• There are missing values in income
• Dt_Customer that indicates the date a customer joined the database is not parsed as
DateTime
• There are some categorical features in our data frame; as there are some features in
dtype: object). So we will need to encode them into numeric forms later.
First of all, for the missing values, I am simply going to drop the rows that have missing
income values.
#To remove the NA values
data = data.dropna()
print("The total number of data-points after removing the rows with
missing values are:", len(data))
The total number of data-points after removing the rows with missing
values are: 2216

In the next step, I am going to create a feature out of "Dt_Customer" that indicates the
number of days a customer is registered in the firm's database. However, in order to keep it
simple, I am taking this value relative to the most recent customer in the record.
Thus to get the values I must check the newest and oldest recorded dates.
data["Dt_Customer"] = pd.to_datetime(data["Dt_Customer"])
dates = []
for i in data["Dt_Customer"]:
i = i.date()
dates.append(i)
#Dates of the newest and oldest recorded customer
print("The newest customer's enrolment date in
therecords:",max(dates))
print("The oldest customer's enrolment date in the
records:",min(dates))

The newest customer's enrolment date in therecords: 2014-12-06

The oldest customer's enrolment date in the records: 2012-01-08

Creating a feature ("Customer_For") of the number of days the customers started to shop
in the store relative to the last recorded date
#Created a feature "Customer_For"
days = []
d1 = max(dates) #taking it to be the newest customer
for i in dates:
delta = d1 - i
days.append(delta)
data["Customer_For"] = days
data["Customer_For"] = pd.to_numeric(data["Customer_For"],
errors="coerce")

Now we will be exploring the unique values in the categorical features to get a clear idea of
the data.
print("Total categories in the feature Marital_Status:\n",
data["Marital_Status"].value_counts(), "\n")
print("Total categories in the feature Education:\n",
data["Education"].value_counts())

Total categories in the feature Marital_Status:

Married 857
Together 573
Single 471
Divorced 232
Widow 76
Alone 3
Absurd 2
YOLO 2
Name: Marital_Status, dtype: int64

Total categories in the feature Education:

Graduation 1116
PhD 481
Master 365
2n Cycle 200
Basic 54
Name: Education, dtype: int64

In the next bit, I will be performing the following steps to engineer some new
features:
• Extract the "Age" of a customer by the "Year_Birth" indicating the birth year of the
respective person.
• Create another feature "Spent" indicating the total amount spent by the customer in
various categories over the span of two years.
• Create another feature "Living_With" out of "Marital_Status" to extract the living
situation of couples.
• Create a feature "Children" to indicate total children in a household that is, kids and
teenagers.
• To get further clarity of household, Creating feature indicating "Family_Size"
• Create a feature "Is_Parent" to indicate parenthood status
• Lastly, I will create three categories in the "Education" by simplifying its value
counts.
• Dropping some of the redundant features
#Feature Engineering
#Age of customer today
data["Age"] = 2021-data["Year_Birth"]

#Total spendings on various items

data["Spent"] = data["MntWines"]+ data["MntFruits"]+
data["MntMeatProducts"]+ data["MntFishProducts"]+
data["MntSweetProducts"]+ data["MntGoldProds"]

#Deriving living situation by marital status"Alone"

data["Living_With"]=data["Marital_Status"].replace({"Married":"Partner
", "Together":"Partner", "Absurd":"Alone", "Widow":"Alone",
"YOLO":"Alone", "Divorced":"Alone", "Single":"Alone",})

#Feature indicating total children living in the household

data["Children"]=data["Kidhome"]+data["Teenhome"]

#Feature for total members in the householde

data["Family_Size"] = data["Living_With"].replace({"Alone": 1,
"Partner":2})+ data["Children"]
#Feature pertaining parenthood
data["Is_Parent"] = np.where(data.Children> 0, 1, 0)

#Segmenting education levels in three groups

data["Education"]=data["Education"].replace({"Basic":"Undergraduate","
2n Cycle":"Undergraduate", "Graduation":"Graduate",
"Master":"Postgraduate", "PhD":"Postgraduate"})

#For clarity
data=data.rename(columns={"MntWines":
"Wines","MntFruits":"Fruits","MntMeatProducts":"Meat","MntFishProducts
":"Fish","MntSweetProducts":"Sweets","MntGoldProds":"Gold"})

#Dropping some of the redundant features

to_drop = ["Marital_Status", "Dt_Customer", "Z_CostContact",
"Z_Revenue", "Year_Birth", "ID"]
data = data.drop(to_drop, axis=1)

Now that we have some new features let's have a look at the data's stats.
data.describe()

Income Kidhome Teenhome Recency

Wines \
count 2216.000000 2216.000000 2216.000000 2216.000000
2216.000000
mean 52247.251354 0.441787 0.505415 49.012635
305.091606
std 25173.076661 0.536896 0.544181 28.948352
337.327920
min 1730.000000 0.000000 0.000000 0.000000
0.000000
25% 35303.000000 0.000000 0.000000 24.000000
24.000000
50% 51381.500000 0.000000 0.000000 49.000000
174.500000
75% 68522.000000 1.000000 1.000000 74.000000
505.000000
max 666666.000000 2.000000 2.000000 99.000000
1493.000000

Fruits Meat Fish Sweets Gold

... \
count 2216.000000 2216.000000 2216.000000 2216.000000 2216.000000
...
mean 26.356047 166.995939 37.637635 27.028881 43.965253
...
std 39.793917 224.283273 54.752082 41.072046 51.815414
...
min 0.000000 0.000000 0.000000 0.000000 0.000000
...
25% 2.000000 16.000000 3.000000 1.000000 9.000000
...
50% 8.000000 68.000000 12.000000 8.000000 24.500000
...
75% 33.000000 232.250000 50.000000 33.000000 56.000000
...
max 199.000000 1725.000000 259.000000 262.000000 321.000000
...

AcceptedCmp1 AcceptedCmp2 Complain Response

Customer_For \
count 2216.000000 2216.000000 2216.000000 2216.000000
2.216000e+03
mean 0.064079 0.013538 0.009477 0.150271
4.423735e+16
std 0.244950 0.115588 0.096907 0.357417
2.008532e+16
min 0.000000 0.000000 0.000000 0.000000
0.000000e+00
25% 0.000000 0.000000 0.000000 0.000000
2.937600e+16
50% 0.000000 0.000000 0.000000 0.000000
4.432320e+16
75% 0.000000 0.000000 0.000000 0.000000
5.927040e+16
max 1.000000 1.000000 1.000000 1.000000
9.184320e+16

Age Spent Children Family_Size Is_Parent

count 2216.000000 2216.000000 2216.000000 2216.000000 2216.000000

mean 52.179603 607.075361 0.947202 2.592509 0.714350

std 11.985554 602.900476 0.749062 0.905722 0.451825

min 25.000000 5.000000 0.000000 1.000000 0.000000

25% 44.000000 69.000000 0.000000 2.000000 0.000000

50% 51.000000 396.500000 1.000000 3.000000 1.000000

75% 62.000000 1048.000000 1.000000 3.000000 1.000000

max 128.000000 2525.000000 3.000000 5.000000 1.000000

[8 rows x 28 columns]

The above stats show some discrepancies in mean Income and Age and max Income and
age.
Do note that max-age is 128 years, As I calculated the age that would be today (i.e. 2021)
and the data is old.
I must take a look at the broader view of the data. I will plot some of the selected features.
#To plot some selected features
#Setting up colors prefrences
sns.set(rc={"axes.facecolor":"#FFF9ED","figure.facecolor":"#FFF9ED"})
pallet = ["#682F2F", "#9E726F", "#D6B2B1", "#B9C0C9", "#9F8A78",
"#F3AB60"]
cmap = colors.ListedColormap(["#682F2F", "#9E726F", "#D6B2B1",
"#B9C0C9", "#9F8A78", "#F3AB60"])
#Plotting following features
To_Plot = [ "Income", "Recency", "Customer_For", "Age", "Spent",
"Is_Parent"]
print("Reletive Plot Of Some Selected Features: A Data Subset")
plt.figure()
sns.pairplot(data[To_Plot], hue= "Is_Parent",palette=
(["#682F2F","#F3AB60"]))
#Taking hue
plt.show()

Reletive Plot Of Some Selected Features: A Data Subset

<Figure size 576x396 with 0 Axes>

Clearly, there are a few outliers in the Income and Age features. I will be deleting the
outliers in the data.
#Dropping the outliers by setting a cap on Age and income.
data = data[(data["Age"]<90)]
data = data[(data["Income"]<600000)]
print("The total number of data-points after removing the outliers
are:", len(data))

The total number of data-points after removing the outliers are: 2212

Next, let us look at the correlation amongst the features. (Excluding the categorical
attributes at this point)
#correlation matrix
corrmat= data.corr()
plt.figure(figsize=(20,20))
sns.heatmap(corrmat,annot=True, cmap=cmap, center=0)

<AxesSubplot:>
The data is quite clean and the new features have been included. I will proceed to the next
step. That is, preprocessing the data.

DATA PREPROCESSING
In this section, I will be preprocessing the data to perform clustering operations.
The following steps are applied to preprocess the data:
• Label encoding the categorical features
• Scaling the features using the standard scaler
• Creating a subset dataframe for dimensionality reduction
#Get list of categorical variables
s = (data.dtypes == 'object')
object_cols = list(s[s].index)

print("Categorical variables in the dataset:", object_cols)

Categorical variables in the dataset: ['Education', 'Living_With']

#Label Encoding the object dtypes.

LE=LabelEncoder()
for i in object_cols:
data[i]=data[[i]].apply(LE.fit_transform)

print("All features are now numerical")

All features are now numerical

#Creating a copy of data

ds = data.copy()
# creating a subset of dataframe by dropping the features on deals
accepted and promotions
cols_del = ['AcceptedCmp3', 'AcceptedCmp4', 'AcceptedCmp5',
'AcceptedCmp1','AcceptedCmp2', 'Complain', 'Response']
ds = ds.drop(cols_del, axis=1)
#Scaling
scaler = StandardScaler()
scaler.fit(ds)
scaled_ds = pd.DataFrame(scaler.transform(ds),columns= ds.columns )
print("All features are now scaled")

All features are now scaled

#Scaled data to be used for reducing the dimensionality

print("Dataframe to be used for further modelling:")
scaled_ds.head()

Dataframe to be used for further modelling:

Education Income Kidhome Teenhome Recency Wines

Fruits \
0 -0.893586 0.287105 -0.822754 -0.929699 0.310353 0.977660
1.552041
1 -0.893586 -0.260882 1.040021 0.908097 -0.380813 -0.872618 -
0.637461
2 -0.893586 0.913196 -0.822754 -0.929699 -0.795514 0.357935
0.570540
3 -0.893586 -1.176114 1.040021 -0.929699 -0.795514 -0.872618 -
0.561961
4 0.571657 0.294307 1.040021 -0.929699 1.554453 -0.392257
0.419540

Meat Fish Sweets ... NumCatalogPurchases

NumStorePurchases \
0 1.690293 2.453472 1.483713 ... 2.503607 -
0.555814
1 -0.718230 -0.651004 -0.634019 ... -0.571340 -
1.171160
2 -0.178542 1.339513 -0.147184 ... -0.229679
1.290224
3 -0.655787 -0.504911 -0.585335 ... -0.913000 -
0.555814
4 -0.218684 0.152508 -0.001133 ... 0.111982
0.059532

NumWebVisitsMonth Customer_For Age Spent Living_With

Children \
0 0.692181 1.973583 1.018352 1.676245 -1.349603 -
1.264598
1 -0.132545 -1.665144 1.274785 -0.963297 -1.349603
1.404572
2 -0.544908 -0.172664 0.334530 0.280110 0.740959 -
1.264598
3 0.279818 -1.923210 -1.289547 -0.920135 0.740959
0.069987
4 -0.132545 -0.822130 -1.033114 -0.307562 0.740959
0.069987

Family_Size Is_Parent
0 -1.758359 -1.581139
1 0.449070 0.632456
2 -0.654644 -1.581139
3 0.449070 0.632456
4 0.449070 0.632456

[5 rows x 23 columns]

DIMENSIONALITY REDUCTION
In this problem, there are many factors on the basis of which the final classification will be
done. These factors are basically attributes or features. The higher the number of features,
the harder it is to work with it. Many of these features are correlated, and hence redundant.
This is why I will be performing dimensionality reduction on the selected features before
putting them through a classifier.
Dimensionality reduction is the process of reducing the number of random variables under
consideration, by obtaining a set of principal variables.
Principal component analysis (PCA) is a technique for reducing the dimensionality of
such datasets, increasing interpretability but at the same time minimizing information loss.
Steps in this section:
• Dimensionality reduction with PCA
• Plotting the reduced dataframe
Dimensionality reduction with PCA
For this project, I will be reducing the dimensions to 3.
#Initiating PCA to reduce dimentions aka features to 3
pca = PCA(n_components=3)
pca.fit(scaled_ds)
PCA_ds = pd.DataFrame(pca.transform(scaled_ds),
columns=(["col1","col2", "col3"]))
PCA_ds.describe().T

count mean std min 25% 50%

75% \
col1 2212.0 -1.116246e-16 2.878377 -5.969394 -2.538494 -0.780421
2.383290
col2 2212.0 1.105204e-16 1.706839 -4.312196 -1.328316 -0.158123
1.242289
col3 2212.0 3.049098e-17 1.221956 -3.530416 -0.829067 -0.022692
0.799895

max
col1 7.444305
col2 6.142721
col3 6.611222

#A 3D Projection Of Data In The Reduced Dimension

x =PCA_ds["col1"]
y =PCA_ds["col2"]
z =PCA_ds["col3"]
#To plot
fig = plt.figure(figsize=(10,8))
ax = fig.add_subplot(111, projection="3d")
ax.scatter(x,y,z, c="maroon", marker="o" )
ax.set_title("A 3D Projection Of Data In The Reduced Dimension")
plt.show()
CLUSTERING
Now that I have reduced the attributes to three dimensions, I will be performing clustering
via Agglomerative clustering. Agglomerative clustering is a hierarchical clustering method.
It involves merging examples until the desired number of clusters is achieved.
Steps involved in the Clustering
• Elbow Method to determine the number of clusters to be formed
• Clustering via Agglomerative Clustering
• Examining the clusters formed via scatter plot
# Quick examination of elbow method to find numbers of clusters to
make.
print('Elbow Method to determine the number of clusters to be
formed:')
Elbow_M = KElbowVisualizer(KMeans(), k=10)
Elbow_M.fit(PCA_ds)
Elbow_M.show()

Elbow Method to determine the number of clusters to be formed:

<AxesSubplot:title={'center':'Distortion Score Elbow for KMeans

Clustering'}, xlabel='k', ylabel='distortion score'>

The above cell indicates that four will be an optimal number of clusters for this data. Next,
we will be fitting the Agglomerative Clustering Model to get the final clusters.
#Initiating the Agglomerative Clustering model
AC = AgglomerativeClustering(n_clusters=4)
# fit model and predict clusters
yhat_AC = AC.fit_predict(PCA_ds)
PCA_ds["Clusters"] = yhat_AC
#Adding the Clusters feature to the orignal dataframe.
data["Clusters"]= yhat_AC

To examine the clusters formed let's have a look at the 3-D distribution of the clusters.
#Plotting the clusters
fig = plt.figure(figsize=(10,8))
ax = plt.subplot(111, projection='3d', label="bla")
ax.scatter(x, y, z, s=40, c=PCA_ds["Clusters"], marker='o', cmap =
cmap )
ax.set_title("The Plot Of The Clusters")
plt.show()

EVALUATING MODELS
Since this is an unsupervised clustering. We do not have a tagged feature to evaluate or
score our model. The purpose of this section is to study the patterns in the clusters formed
and determine the nature of the clusters' patterns.
For that, we will be having a look at the data in light of clusters via exploratory data
analysis and drawing conclusions.
Firstly, let us have a look at the group distribution of clustring
#Plotting countplot of clusters
pal = ["#682F2F","#B9C0C9", "#9F8A78","#F3AB60"]
pl = sns.countplot(x=data["Clusters"], palette= pal)
pl.set_title("Distribution Of The Clusters")
plt.show()

The clusters seem to be fairly distributed.

pl = sns.scatterplot(data = data,x=data["Spent"],
y=data["Income"],hue=data["Clusters"], palette= pal)
pl.set_title("Cluster's Profile Based On Income And Spending")
plt.legend()
plt.show()
Income vs spending plot shows the clusters pattern
• group 0: high spending & average income
• group 1: high spending & high income
• group 2: low spending & low income
• group 3: high spending & low income
Next, I will be looking at the detailed distribution of clusters as per the various products in
the data. Namely: Wines, Fruits, Meat, Fish, Sweets and Gold
plt.figure()
pl=sns.swarmplot(x=data["Clusters"], y=data["Spent"], color=
"#CBEDDD", alpha=0.5 )
pl=sns.boxenplot(x=data["Clusters"], y=data["Spent"], palette=pal)
plt.show()
From the above plot, it can be clearly seen that cluster 1 is our biggest set of customers
closely followed by cluster 0. We can explore what each cluster is spending on for the
targeted marketing strategies.
Let us next explore how did our campaigns do in the past.
#Creating a feature to get a sum of accepted promotions
data["Total_Promos"] = data["AcceptedCmp1"]+ data["AcceptedCmp2"]+
data["AcceptedCmp3"]+ data["AcceptedCmp4"]+ data["AcceptedCmp5"]
#Plotting count of total campaign accepted.
plt.figure()
pl = sns.countplot(x=data["Total_Promos"],hue=data["Clusters"],
palette= pal)
pl.set_title("Count Of Promotion Accepted")
pl.set_xlabel("Number Of Total Accepted Promotions")
plt.show()
There has not been an overwhelming response to the campaigns so far. Very few
participants overall. Moreover, no one part take in all 5 of them. Perhaps better-targeted
and well-planned campaigns are required to boost sales.
#Plotting the number of deals purchased
plt.figure()
pl=sns.boxenplot(y=data["NumDealsPurchases"],x=data["Clusters"],
palette= pal)
pl.set_title("Number of Deals Purchased")
plt.show()
Unlike campaigns, the deals offered did well. It has best outcome with cluster 0 and cluster
3. However, our star customers cluster 1 are not much into the deals. Nothing seems to
attract cluster 2 overwhelmingly
#for more details on the purchasing style
Places =["NumWebPurchases", "NumCatalogPurchases",
"NumStorePurchases", "NumWebVisitsMonth"]

for i in Places:
plt.figure()
sns.jointplot(x=data[i],y = data["Spent"],hue=data["Clusters"],
palette= pal)
plt.show()

<Figure size 576x396 with 0 Axes>

<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
PROFILING
Now that we have formed the clusters and looked at their purchasing habits. Let us see who
all are there in these clusters. For that, we will be profiling the clusters formed and come to
a conclusion about who is our star customer and who needs more attention from the retail
store's marketing team.
To decide that I will be plotting some of the features that are indicative of the customer's
personal traits in light of the cluster they are in. On the basis of the outcomes, I will be
arriving at the conclusions.
Personal = [ "Kidhome","Teenhome","Customer_For", "Age", "Children",
"Family_Size", "Is_Parent", "Education","Living_With"]
for i in Personal:
plt.figure()
sns.jointplot(x=data[i], y=data["Spent"], hue =data["Clusters"],
kind="kde", palette=pal)
plt.show()

<Figure size 576x396 with 0 Axes>

<Figure size 576x396 with 0 Axes>

<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
<Figure size 576x396 with 0 Axes>
Points to be noted:
The following information can be deduced about the customers in different clusters.

CONCLUSION
In this project, I performed unsupervised clustering. I did use dimensionality reduction
followed by agglomerative clustering. I came up with 4 clusters and further used them in
profiling customers in clusters according to their family structures and income/spending.
This can be used in planning better marketing strategies.
If you liked this Notebook, please do upvote.
If you have any questions, feel free to comment!
Best Wishes!

END