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Journal : Jurnal Teknik Informatika (JUTIF)

CUSTOMER LOYALTY SEGMENTATION IN ONLINE STORE USING LRFM AND MLRFM IN COMBINATION WITH RM K-MEANS ALGORITHM Utomo, Angelina Caroline; Handojo, Andreas; Octavia, Tanti
Jurnal Teknik Informatika (Jutif) Vol. 5 No. 2 (2024): JUTIF Volume 5, Number 2, April 2024
Publisher : Informatika, Universitas Jenderal Soedirman

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.52436/1.jutif.2024.5.2.1497

Abstract

The rapid development of online business in recent years has driven Store X to embark on a digital transformation. By the end of 2020, Store X relocate their conventional business to online business. The greatest obstacle and key to success for online business operators, such as Store X, is gaining and retaining consumer loyalty in the face of an increasing number of competitors. Therefore, the company must be able to identify the character (behavior) of its clients to provide appropriate treatment. Each customer's behavior is unique, which means they must all be treated differently. However, all this time, Online Store X has provided the same treatment (as much of a discount) to all its customers due to the lack of information regarding their customers’ characteristics. Therefore, in this study, customers of Online Store X were segmented based on their transactional behavior using online transaction history data from March 2021 to March 2023. Two customer analysis models, LRFM and MLRFM, will be combined with RM K-Means to find the best combination through Silhouette Coefficient values. The optimal number of clusters (k) is then determined using the Elbow Method. The results indicate that the optimal number of clusters for both combinations is K=3, with the combination of MLRFM and RM K-Means is the best combination. The finest combination has a silhouette coefficient value of 0.8609. Based on this combination, it is also known that 2,053 customers in cluster 3 are loyal customers, while 2,339 customers in cluster 1 and 2 are lost customers. The results of this study were also implemented on websites built for X Store using Python programming languages and MySQL databases, making it easier for companies to see data visualization.
Co-Authors A.A. Ketut Agung Cahyawan W Abd. Rasyid Syamsuri Agus Santoso Agustinus Gandawidjaja Agustinus Noertjahyana Alexander Setiawan Alvin Assianto Leiman Anita Nathania Purbowo Anton Wahyudi Arif Priyata Setiawan, Arif Priyata Bernardo Taufiq Mangunwijaya, Bernardo Taufiq Buliali, Joko Lianto Caroline Indah Wijaya, Caroline Indah Christian Adiputra Demetrio F. Edryan Dennis Yuputra Permana Dian Christiani Linggadihardja, Dian Christiani Djoni H. Setiabudi Eddy Setyawan Edward Budiman Sutanto Edyq Setijarso Endhy, Kezia Tiatira Fendhy Ongko Fenny Valentine Budiono, Fenny Valentine Fransisco Edo, Fransisco Frica Salim Wiharjo Fujianto - Go Ornella Aquaria Gregorius Satia Budhi Happy Setiawan Harry Timothy Tumalewa Henry Novianus Palit Ibnu Gunawan Irma Yunita Setiawati, Irma Yunita Iwan Setiawan Jaceline Wongsonegoro Jessica Florencia Joella Joella Johan Sutanto Jonathan Kurnia Anggita Jonathan, Christopher Julius Wonodihardjo Justinus Andjarwirawan Karla Usmana Kartika Gunadi Kevin Alfian Santoso, Kevin Alfian Kristo Radion Purba Leo Willyanto Santoso Lewi S. Kristianto Lily Puspa Dewi Michael Christian Wibisono Mohammad Isa Irawan Monika Irfanny Wongso, Monika Irfanny Osbert Tjitro Sampurna Oviliani Yenty Yuliana Rachma Yunita Resmana Lim Resmana Lim Robby Adrian Joesoef Robby Christian, Robby Robert Gosal, Robert Rolly Intan Rudy Adipranata Rufus Dian Oeinata Sandy Sunaryo Savio Enoson Siana Halim Silvia Rostianingsih Sontama Baktiano Ibe, Sontama Baktiano Sri Maharsi Stephanie Soesatyo Sugeng Hadi Wijaya, Sugeng Hadi Sugianto Sukanto Tedjokusumo Sulistya Ferryanto, Sulistya Tanti Octavia Utomo, Angelina Caroline Vianny Novita, Vianny Wahyu Christianto William Surya Wijaya Wiwie Yoanna Yan Ivan Handana Putra, Yan Ivan Handana Yoel Tanuwijaya, Yoel Yulia - Yulia . Yulia Yulia Yulia Yulia Yuliana Chandinegara Yulius Bastion, Yulius