JASDS: Journal of Applied Statistics and Data Science
Vol. 3 No. 1 (2026): Journal of Applied Statistics and Data Science

Clustering PT Indosat Tbk B2B Customers Using K-Medoids Algorithm with One Hot Encoding Technique




Article Info

Publish Date
28 Mar 2026

Abstract

Cluster analysis is a method for grouping objects based on characteristic similarities. The K-medoids algorithm, an extension of K-means, offers superior robustness against outliers by utilizing representative objects (medoids). This study analyzes transaction data from Indosat Ooredoo Hutchison’s B2B directorate Malang branch for the second semester of 2024. The objective is to segment B2B customers to assist the directorate in formulating targeted business strategies. Using K-medoids with Gower distance, 81 companies were categorized into five clusters: High-Tech Aggressive Potential (18 companies) with the highest purchasing power and active digitalization; Churn Potential (13 companies) at risk of service termination; High-IT Potential (25 companies) focusing on IT digitalization; Stable Potential (9 companies) showing consistent purchasing behavior; and Low-Tech Moderate Potential (16 companies) with moderate demand for complex technology. These findings enable the B2B directorate to implement data-driven strategies, such as personalized retention programs and tailored technological offerings. This segmentation provides a strategic foundation for optimizing customer relationship management and resource allocation.

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Journal Info

Abbrev

jasds

Publisher

Subject

Computer Science & IT Mathematics

Description

JASDS : Journal of Applied Statistics and Data Science (e-ISSN: 3048-4391) is a journal managed by Universitas Brawijaya , Malang, Indonesia, and associated with FORSTAT (Forum Pendidikan Tinggi Statistika) which is published twice a year (in March and October). The objectives of Journal of Applied ...