Dynamic User Segmentation and Usage Profiling

TL;DR

This paper introduces a novel clustering method for ultra-high dimensional, sparse categorical user data by transforming it into a lower-dimensional space based on covariate classes, improving cluster quality.

Contribution

It proposes a feature transformation technique that leverages dataset sparsity to enable effective clustering of categorical big data, outperforming traditional methods.

Findings

Achieved similar-sized user clusters with minimal overlap (8%)

Validated on a large song playlist dataset

Demonstrated effectiveness for diverse business applications

Abstract

Usage data of a group of users distributed across a number of categories, such as songs, movies, webpages, links, regular household products, mobile apps, games, etc. can be ultra-high dimensional and massive in size. More often this kind of data is categorical and sparse in nature making it even more difficult to interpret any underlying hidden patterns such as clusters of users. However, if this information can be estimated accurately, it will have huge impacts in different business areas such as user recommendations for apps, songs, movies, and other similar products, health analytics using electronic health record (EHR) data, and driver profiling for insurance premium estimation or fleet management. In this work, we propose a clustering strategy of such categorical big data, utilizing the hidden sparsity of the dataset. Most traditional clustering methods fail to give proper clusters for such data and end up giving one big cluster with small clusters around it irrespective of the true structure of the data clusters. We propose a feature transformation, which maps the binary-valued usage vector to a lower dimensional continuous feature space in terms of groups of usage categories, termed as covariate classes. The lower dimensional feature representations in terms of covariate classes can be used for clustering. We implemented the proposed strategy and applied it to a large sized very high-dimensional song playlist dataset for the performance validation. The results are impressive as we achieved similar-sized user clusters with minimal between-cluster overlap in the feature space (8%) on average). As the proposed strategy has a very generic framework, it can be utilized as the analytic engine of many of the above-mentioned business use cases allowing an intelligent and dynamic personal recommendation system or a support system for smart business decision-making.