Customer Loyality Segmentation on Point of Sale System Using Recency-Frequency-Monetary (RFM) and K-Means

Abstract

It is no doubt that the development of the business world has been progressive. Point of sale is one of the many system used as a means of payment in various existing businesses, especially in heterogeneous markets. The activity of transactions between Point of Sale Systems and Customers occur in the business world. Keep in mind also that one of the main factors of business success, is from customers. There is the need of an attractive strategy and certainly it will be to increase the income and assets of a business. To know that, this research will explore the behavior of customer which is based marketing, through RFM Method (Recency, Frequency and Monetary). The case of this study is in Goldfinger Store. It will do segmentation and also use data mining technique to do clustering by using K-Means with result of loyal and potential customer. The results of segmentation using RFM (Recency, Frequency, Monetary) and K-Means methods have produced multiple clusters by dividing them into groups.