Cluster: Overview

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Cluster Analysis is about exploring and identifying natural groupings in a set of data points.  In FastStats we are interested in taking a selection of records (say customers) and automatically detecting groups with similar characteristics.  We can use these groups or clusters to better visualize our customer population and segment them for marketing purposes.

For example we could look at customers who bought holidays in a particular year and we might find that they can be grouped into 5 distinct clusters based on their age, income, location etc.  This would be a valuable insight in itself and we could further use this knowledge to market different offers / brands to each of the clusters.