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Journal : ELINVO (Electronics, Informatics, and Vocational Education)

A Machine Learning Model for Local Market Prediction Using RFM Model Yahya, Muhammad; Parenreng, Jumadi Mabe; Fathahillah, Fathahillah; Wahid, Abdul; Wahid, M. Syahid Nur; Fajar B, Muhammad
Elinvo (Electronics, Informatics, and Vocational Education) Vol. 9 No. 1 (2024): Mei 2024
Publisher : Department of Electronic and Informatic Engineering Education, Faculty of Engineering, UNY

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21831/elinvo.v9i1.58671

Abstract

This study explores the application of machine learning for local market prediction in e-commerce. By leveraging the RFM segmentation method, the model predicts product sales based on user shopping patterns. The RFM score, calculated using recency, frequency, and monetary values of customer purchases, segments customers into distinct categories. The research utilizes a dataset obtained through seven parameters and performs data preprocessing. K-Means clustering then classifies customers into Low, Medium, and High levels based on their RFM scores. Customers in the Low category exhibit low purchase activity but high product browsing. The Medium segment displays consistent purchases of a limited product range. High-level customers demonstrate frequent purchases with significant spending. The identified customer segments enable targeted marketing strategies. For Low-level customers, discounts or product feature promotions can incentivize purchases. Combining product offerings can entice Medium-level customers to explore new products. Finally, High-level customers can be engaged through loyalty programs offering rewards. This approach empowers e-commerce sellers to tailor marketing strategies for each customer segment, enhancing market dominance.
Co-Authors Abdul Muis Mappalotteng Abdul Wahab Abdul Wahid Adiba, Fhatiah Ahmar, Ansari Saleh Ainun Haurul Jannah Akhyar Muchtar, Akhyar Al Imran Alamksyah, Arif S Nur Alawiah Ahmad Alda Valecia Sunardi Amiruddin Amiruddin Amukune, Stephen Anas Arfandi Andi Akram Nur Risal Andi Baso Kaswar Andi Baso Kaswar Arifiyanti, Fitria Assiddiq, Muchlis Aulyah Zakilah Ifani AYU LESTARI B, Sahrul BAKHRANI RAUF Baso, Fadhlirrahman Dandi Dandi Dewi Fatmarani Surianto Dewi Triantini Dyah Vitalocca Edi Suhardi Rahman Ervi Novitasari Fahrul Rahman Fardan, Muhammad Fathin, Fathin Kartika Fhatiah Adiba Fikriawan, Agil Fiskia Rera Baharuddin Fitri Wahyu Gowa, Srijadi Hasra Hasra Hasrul Hasrul I Nyoman Adi Putra Iwan Suhardi Jamaluddin Jamaluddin Jumadi Mabe Parenreng Karim, Sugeng A. Kasau, Muh. Zainuddin R Khaidir Rahman Kholik Prasojo Lahming Lahming Lahming, Lahming Lutvi, Lutvi Karimah M. Miftach Fakhri M. Syahid Nur Wahid M.Pd S.T. S.Pd. I Gde Wawan Sudatha . Mochammad Imron Awalludin Mudarris Mudarris Muh Aries Muh Yusuf Mappeasse Muh. Asriadi Muh. Yahya Muhammad Dinar Muhammad Fadel Adha Muhammad Fajar B Muhammad Haristo Rahman Muhammad Rizal Muhammad Yahya Muhammad Yahya Muis, Mappalotteng Abdul Muntazarah, Fediyatun Nelpi Amria Nur Aisyah Abdullah Nur Anny Suryaningsih Taufieq Nurjannah Nurjannah Nurul Adnin Usman Nurul Mukhlisah Abdal Pattiroi, Muhammad Nauval Paulus Insap Santosa Rauf, Annajmi Ridwan Daud Mahande Rinaldy, Didi Riska, Muhammad Rismawati Rismawati Rissa Megavitry Rudy Hartanto Saharuddin Saharuna Saharuna Salam, Fardian Sanatang Setialaksana, Wirawan - Sidik Sidin, Udin Soeharto Soeharto Sulaiman, Dwi Rezky Anandari Sulfany, Rika Sulfawarni Wanda Agung Syahrul Syahrul Taris, Lumu Triseda Marselina Siman Veronika Asri Tandirerung Wahid, M. Syahid Nur Wahid, Syahid Nur Yasdin, Yasdin Yusril Ranah Mahendra Zainuddin Zainuddin Zainuddin, Zainuddin Zulhajji, Zulhajji