Collaboration with stakeholders is crucial for meaningful and useful clustering results.
Unsupervised learning techniques like K-means are valuable for fraud risk detection when labeled data is unavailable.
Deep dives
Real-world use cases for Camens clustering
This podcast episode explores the practical applications of Camens clustering and the importance of collaboration with stakeholders to ensure meaningful and useful clustering results. It emphasizes the need for unsupervised learning techniques when labeled data is not available, as illustrated by a fraud risk scoring project in a banking environment.
Challenges with Camens clustering in fraud risk detection
The podcast discusses the challenges encountered when using Camens clustering for fraud risk detection. It highlights the need to identify clusters of anomalies within larger benign clusters, which are often non-convex and require different clustering techniques. It also mentions the limitations of K-means clustering for categorical data and the difficulty in convincing stakeholders of the validity of clustering results.
Successful application of Camens clustering in CRM
The episode presents a successful use case of Camens clustering in a customer relationship management (CRM) context. The podcast describes how clustering was used to identify customer segments that responded better to SMS marketing campaigns. The presence of distinct customer groups and patterns in the data gave confidence in the clustering results, leading to targeted marketing strategies.
Evaluating and conveying clustering results
The podcast discusses techniques for evaluating the quality of clustering results and conveying their value to business stakeholders. It mentions metrics such as the elbow method, Silhouette coefficient, Gap statistic, and the Calinski-Harabasz index for determining the optimal number of clusters. It also highlights the importance of visualizing and accurately presenting clustering results to gain stakeholder buy-in and make informed decisions.
K-means is widely used in real-life business problems. In this episode, Mujtaba Anwer, a researcher and Data Scientist walks us through some use cases of k-means. He also spoke extensively on how to prepare your data for clustering, find the best number of clusters to use, and turn the ‘abstract’ result into real business value. Listen to learn. Click here to access additional show notes on our website! Thanks to our sponsor! ClearML is an open-source MLOps solution users love to customize, helping you easily Track, Orchestrate, and Automate ML workflows at scale.
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