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Journal : Building of Informatics, Technology and Science

Penerapan Algoritma K-Medoids dan FP-Growth dengan Model RFM untuk Kombinasi Produk Pertiwi, Tata Ayunita; Afdal, M.; Novita, Rice; Mustakim, Mustakim
Building of Informatics, Technology and Science (BITS) Vol 6 No 2 (2024): September 2024
Publisher : Forum Kerjasama Pendidikan Tinggi

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.47065/bits.v6i2.5268

Abstract

Competition in the business world has increased, resulting in companies having to optimize sales and retain their customers. Customers are an important company asset that must be well looked after. The aim of customer segmentation is to understand customer purchasing behavior so that companies can implement appropriate marketing strategies. Aurel Mini Mart is a retail business that does not yet consider the recency, frequency and monetary value of customer shopping. So far, promotions have been carried out only based on estimates, without taking into account accurate data and information. This research combines the RFM model with data mining techniques to segment customers. Based on the 5 clusters formed from the clustering process, gold customers are in cluster 1 which has high loyalty with low recency value, high frequency and high monetary value. This shows that customers in this segment often make purchases for quite large amounts of money. Meanwhile, customers in clusters 2, 3, 4, and 5 are dormant customers who rarely make transactions and the amount of money spent is also small. After the customer segmentation process is complete, the next step is to use the FP-Growth Algorithm to associate the products purchased by customers. This aims to obtain a better product combination, so that the sales strategy can be more effective and the company can make a profit.