Introduction In ecommerce companies like online retails, customer segmentation is necessary in order to understand customers behaviors. It leverages aqcuired customer data like the one we have in our case, transactions data in order to divide customers into groups. Our goal in this Notebook is to cluster our customers to get insights in: Increasing revenue (Knowing customers who present most of our revenue) Increasing customer retention Discovering Trends and patterns Defining customers at risk We will do RFM Analysis as a first step and then combine RFM with predictive algorithms (k-means). RFM Analysis answers these questions: Who are our best customers? Who has the potential to be converted in more profitable customers? Which customers we must retain? Which group of customers is most likely to respond to our current campaign? More about RFM here.