Journal of Artificial Intelligence and Engineering Applications (JAIEA)
Vol. 5 No. 2 (2026): February 2026

E-Commerce Customer Segmentation Application Based on the K-Means Algorithm

Nehemia (Unknown)
Jekoniah Nahum Pakage (Unknown)
Veronica Lois (Unknown)
Regina Arieskha (Unknown)



Article Info

Publish Date
15 Feb 2026

Abstract

Ineffective e-commerce marketing serves as the background for this research, which aims to develop a customer segmentation application for targeted marketing. The K-Means Clustering method with RFM (Recency, Frequency, Monetary) analysis is applied to data from 178 customers. The research methodology includes data preprocessing, feature transformation, and the determination of the optimal K using the Elbow Method. The results indicate that K=3 is the optimal number of clusters. Three segments were successfully identified: 'Champions' (18.5%, 33 customers) with the highest Frequency/Monetary values, 'Active & Potential' (41%, 73 customers) with the lowest Recency (most recent), and 'At Risk' (40.5%, 72 customers) with the highest Recency (longest duration since last transaction). The study concludes that the developed Streamlit-based application successfully visualizes these segments interactively to support strategic decision-making in marketing.

Copyrights © 2026






Journal Info

Abbrev

JAIEA

Publisher

Subject

Automotive Engineering Computer Science & IT Control & Systems Engineering

Description

The Journal of Artificial Intelligence and Engineering Applications (JAIEA) is a peer-reviewed journal. The JAIEA welcomes papers on broad aspects of Artificial Intelligence and Engineering which is an always hot topic to study, but not limited to, cognition and AI applications, engineering ...