Jurnal Sistem Cerdas
Vol. 7 No. 3 (2024)

Customer Segmentation Using the RFMD Model and Fuzzy C-Means Algorithm

Muhammad Hafis Zikri (Unknown)
Siti Monalisa (Unknown)
Fitriani Muttakin (Unknown)



Article Info

Publish Date
17 Dec 2024

Abstract

Many businesses face challenges in optimizing customer data processing, which often limits the ability to understand customer behavior and improve marketing strategies. This research addresses these challenges by applying the RFMD (Recency, Frequency, Monetary, Diversity) model combined with the Fuzzy C-Means (FCM) clustering algorithm to segment customers based on transaction data. The results identified five distinct customer segments based on Customer portfolio Analysis (CPA), which were validated using the Davies-Bouldin Index (DBI), with each segment showing diverse levels of engagement and behavioral patterns. The results show that the best clusters of Superstar and Golden customers are clusters 4 and 2, while Typical and Occasional customers are clusters 1 and 3. The lowest cluster of Everyday customers is found in cluster 5. The findings provide applicable insights to improve customer retention and optimize data-driven marketing strategies.

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Journal Info

Abbrev

jsc

Publisher

Subject

Automotive Engineering Computer Science & IT Control & Systems Engineering Education Electrical & Electronics Engineering

Description

Jurnal Sistem Cerdas dengan eISSN : 2622-8254 adalah media publikasi hasil penelitian yang mendukung penelitian dan pengembangan kota, desa, sektor dan kesistemam lainnya. Jurnal ini diterbitkan oleh Asosiasi Prakarsa Indonesia Cerdas (APIC) dan terbit setiap empat bulan ...