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Journal : Green Intelligent Systems and Applications

Recency, Frequency, and Monetary-Based Customer Segmentation Using K-Means for Analysing Transactional Behaviour in a Service-Based Micro, Small, and Medium Enterprises Ardiansyah, Rizka; Trezandy, Nouval; skandar, Iskandar; Ilman, Meilani; Sahril, Sahril
Green Intelligent Systems and Applications Volume 6 - Issue 1 - 2026
Publisher : Tecno Scientifica Publishing

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.53623/gisa.v6i1.919

Abstract

Micro, Small, and Medium Enterprises (MSMEs) often faced challenges in designing effective promotional initiatives due to the limited use of systematic customer behavior analysis. This study examined the application of (Recency, Frequency, Monetary) RFM analysis combined with K-Means clustering to explore customer segmentation in a service-based MSME context. Transaction data from a local laundry service operating in Palu, Indonesia, consisting of 2,220 digital transaction records collected between 2022 and 2025, were processed and transformed into RFM variables using min–max normalization. The optimal number of clusters was determined using the Elbow method, resulting in four customer segments. Cluster quality was evaluated using internal validation metrics, yielding a Davies–Bouldin Index (DBI) of 0.61 and a Sum of Squared Errors (SSE) value of 1.73, indicating reasonably compact and well-separated clusters. The resulting segments exhibited distinct transactional profiles across recency, transaction frequency, and monetary contribution, reflecting heterogeneity in customer engagement within the studied MSME. Rather than prescribing specific marketing actions, the findings provided an interpretable analytical basis for considering differentiated promotional strategies aligned with observed customer behavior patterns. Overall, this study demonstrated that RFM-based segmentation offered a feasible and data-driven approach to supporting evidence-informed promotional planning in service-oriented MSMEs operating under data and resource constraints.
Co-Authors ., Rezki Abdillah Sani, Ilham Abdul Mahatir Najar Abdullah Abdullah Adhira Putri, Dhivanny Agung Stiven Cahyati Angely Ain, Moch. Zukhruf Amriana Amriana Amriana Amriana Andhyka, Andhyka Andi Hendra Andi Hendra Angraeni, Dwi Shinta Anita Ahmad Kasim Anita, Ayu Arsita, Tiara Juli Asriani Asriani, Asriani Ayu Hernita Bakri Chandra, Ferri Rama Darojah, Murtafiatun Delia, Fenita Deni Luvi Jayanto Deny Wiria Nugraha Dessy Santi Djohari, Riyandi Dwitama Dwi Shinta Angreni Dwimanhendra, Muhammad Rifaldi Fahlevi, Mohammad Fazrin Fajar, Moh Fajriyah, Nurul Faldiansyah, Faldiansyah Firzatullah, Raden Muhamad Hajra Rasmita Ngemba Hamid, Odai Amer Hanama, Ikhsan Wahyudin Ihalauw, Sahron Angelina Ihwan, Abib Raifmuaffah Ilman, Meilani Karnita Sumbaluwu, Harlin Feby Kartika, Rina Krama, Tri Laila, Rahma Lamadjido, Moh. Raihan Dirga Putra Lamasitudju, Chairunnisa Mandra Maulana, Muhammad Syahputra Mohamad Irfan, Mohamad Mohammad Yazdi Pusadan Muh. Ashari Rasyid Muhammad Akbar Muhammad Akbar Mutiara Sari Ngemba, Hajra Ningsih, Alief Surya Noel Marcell Jonathan Wongkar Noviantika, Noviantika Nurhikmah Supardi Nursiana Zasqia, Andi Nirina Pagiu, Harry T. Paloloang, Muhammad Fadhil Akmal B. Priska, Salsa Dilah Putra, Adhitya Pramana Qofifa, Sitti Nurlaili Rahmah Laila Rasmita Ngemba, Hajra Rasmita, Hajra Rinianty Rinianty Rinianty, Rinianty Rizka Ardiansyah Rizky, Moh Taufiq Ryfial Azhar Saada, Rahmadian A. Sabarudin Saputra Saputra, Sabaruddin Septiano Anggun Pratama Setiawan, Dita Widayanti Siswahyudianto Siti Rahmawati skandar, Iskandar Sri Khaerawati Nur Sukirman Sukirman Syahrullah Syahrullah Syahrullah Syaiful Hendra Wirdayanti Wirdayanti Wirdayanti Wongkar, Noel Marcell Jonathan Yanti, Wirda Yuri Yudhaswana Joefrie Yusuf Anshori Zulkifli Zulkifli