26 Apr 2018
Intense competition in the business field motivates a small and medium enterprises (SMEs) to manage customer services to the maximal. Improve of customer royalty by grouping cunstomers into some of groups and determining appropriate and effective marketing strategies for each group. Customer segmentation can be performed by data mining approach with clustering method. The main purpose of this paper is customer segmentation and measure their loyalty to a SME’s product. Using CRISP-DM method which consist of six phases, namely business understanding, data understanding, data preparatuin, modeling, evaluation and deployment. The K-Means algorithm is used for cluster formation and RapidMiner as a tool used to evaluate the result of clusters. Cluster formation is based on RFM (recency, frequency, monetary) analysis. Davies Bouldin Index (DBI) is used to find the optimal number of clusters (k). The customers are divided into 3 clusters, total of customer in first cluster is 30 customers who entered in typical customer category, the second cluster there are 8 customer whho entered in superstar customer and 89 customers in third cluster is dormant cluster category.
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