Applications of UL
UL, as we’ve discussed, is a type of ML that identifies patterns in data without the need for explicit supervision. It’s like a detective who arrives at a crime scene with no witnesses but must still piece together the story from the available evidence. But where does this kind of “detective work” find its application in the business world? Let’s explore.
Market segmentation
One of the most common applications of UL is in market segmentation. Businesses with a diverse customer base use clustering algorithms to group customers based on their behavior, demographics, and purchase history. This allows them to tailor their marketing strategies to each group, maximizing engagement and conversion rates.
Consider a global retail brand with millions of customers. They could use UL to segment their customers into groups, such as “young professionals,” “parents,” or “retirees,” each with distinct...
