Journal of Information System Exploration and Research
Vol. 3 No. 1 (2025): January 2025

An Implementation of Loyalty Program Theory Based on Recency Frequency Monetary Score in Information Systems to Increase Customer Loyalty

Rajagukguk, Ricky (Unknown)



Article Info

Publish Date
31 Jan 2025

Abstract

This study aims to help online retail stores find the right strategy for treating customers through customer segmentation based on Recency, Frequency, and Monetary (RFM) Score. With a quantitative approach, this study uses the K-Means Clustering algorithm to group customers based on their RFM values ​​and applies it within the Loyalty Program Theory framework. The results show that the Best Customers segment has the highest percentage at 26.3%, which emphasizes the importance of retaining high-value customers through exclusive loyalty programs such as VIP access and premium offers. In contrast, the Lost Customers segment at 24.8% requires attention through retargeting and discount programs to attract them back. This study proves that data-based customer segmentation and the implementation of relevant strategies can strengthen long-term relationships with customers, increase loyalty, and ultimately help the development of online retail businesses.

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Journal Info

Abbrev

joiser

Publisher

Subject

Computer Science & IT Decision Sciences, Operations Research & Management Engineering

Description

Journal of Information System Exploration and Research (JOISER) (e-ISSN: 2963-6361, p-ISSN: 2964-1160) is a journal that publishes and disseminates scientific research papers on information systems to a wide audience, particularly within the information system society. Articles devoted to discussing ...