Clustering and the RFM model (Recency, Frequency, & Monetary) are basically the industry standards when it comes to segmenting your customers using machine learning. For that reason they're our go-to.
How does it work?
With your data, we employ a machine learning task known as clustering using customers' recency, frequency, and monetary value (e.g.: average total basket). This places each customer into meaningful categories/segments such as 'Most loyal', 'Biggest spenders', 'Low recency', 'Frequent shoppers', and more, allowing you to target them intelligently and capitalize on their behavior.