Hi Chetan Raut,
We utilize a classification model to predict the category of new customers because clustering, as an unsupervised learning technique, does not preserve grouping logic in a form that can be directly applied to new data. Clustering is primarily used in the initial phase to identify natural patterns and groupings within the existing dataset. However, incorporating a new customer into a clustering model typically requires re-executing the entire clustering process, which can be computationally intensive and may alter the existing group structure.
Once clusters are established and interpreted (e.g., labeled as "high value – low volume" or "frequent small purchaser"), a classification model can be trained using this labeled data. This model enables consistent and efficient prediction of customer categories for new data points, without impacting the original cluster definitions.
In this way, classification offers a practical, scalable, and reliable solution for applying the insights gained from clustering to future customer data.
Please reach out to us if you have any other queries.
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