What is Cluster Analysis?

Cluster analysis is a statistical technique used to group similar data points into clusters based on their characteristics or attributes. The goal is to identify natural patterns or structures within a dataset, making it easier to analyze and understand relationships between data points.

Businesses use cluster analysis for various applications, such as customer segmentation, market research, image recognition, and anomaly detection. By categorizing data effectively, organizations can enhance decision-making, improve targeting, and uncover hidden insights that drive strategic growth and operational efficiency.