Machine learning use case

Customer segmentation

Explore unsupervised customer groups with K-Means, agglomerative clustering, and Gaussian mixtures.

Experiment design

Setup used for the reference run

This fixed setup makes the comparison understandable and repeatable. It is an example configuration, not an automatic recommendation for every dataset.

DatasetUCI Wholesale Customers
TargetNo supervised target
Validation80/20 holdout
Random state42

Input features

Annual spend across fresh, milk, grocery, frozen, detergents/paper, and delicatessen categories

Preprocessing

Exclude Channel and Region from the unsupervised feature set, apply log1p to skewed spend, then standardize.

Build sequence

Recreate the experiment in AutoTrain

  1. Inspect the dataset.Confirm field types, missing values, class balance, identifiers, and whether each feature exists at prediction time.
  2. Save preprocessing.Apply the documented transformations without fitting them on the holdout rows.
  3. Train comparable runs.Keep the dataset version and split constant while changing only the algorithm or intended hyperparameters.
  4. Review errors.Use task-appropriate metrics and inspect where the model fails before creating a testing tab.
Fixed reference run

Reference benchmark

These values were computed with scikit-learn using the setup above. They show what one reproducible baseline looks like; they are not copied from the cited paper and are not a production guarantee.

Silhouette by model

Higher is better
K-Means (k=3)0.258
Agglomerative (k=3)0.255
Gaussian Mixture (k=3)0.106

All runs use three clusters and random state 42 where applicable.

Reading the result

What the benchmark means

K-Means and agglomerative clustering are nearly tied, and all silhouette values are modest. Treat the clusters as exploratory summaries and validate them against business outcomes before naming or activating them.

Benchmark vs. your experiment: the chart above is a static reference. Results shown inside your dashboard are generated from your own dataset, parameters, validation split, and saved model.
AutoTrain dashboard used to compare machine learning experiments
Visual context for the customer segmentation workflow. Model selection should be based on validation metrics and product constraints.
Responsible use

Limitations and risk

Low silhouette values indicate overlapping groups. Segment names require business interpretation and must be validated against downstream outcomes.

Before deployment

Repeat validation on recent, representative data; review subgroup errors; define a fallback; and monitor input and outcome drift.

Human decisions

Use the prediction as evidence, not as the sole decision maker, where an error could affect education, health, access, pricing, or customer treatment.

Peer-reviewed reference

Journal foundation

Punj & Stewart (1983), Cluster Analysis in Marketing Research: Review and Suggestions for Application, Journal of Marketing Research.

The journal reference provides methodological or domain context. AutoTrain's benchmark above is a separate implementation using the stated holdout configuration.

Open journal article

Continue the workflow