Authors : Maulana Rumi Irwan Balo; Muhammad Rakib; Muhammad Ashdaq

Volume/Issue : Volume 10 - 2025, Issue 7 - July

Google Scholar : https://tinyurl.com/jr5ua3fz

Scribd : https://tinyurl.com/3uxsskzc

DOI : https://doi.org/10.38124/ijisrt/25jul508

Note : A published paper may take 4-5 working days from the publication date to appear in PlumX Metrics, Semantic Scholar, and ResearchGate.

Note : Google Scholar may take 30 to 40 days to display the article.

Abstract : This research aims to segment customers of the Icon Yasika Makassar by implementing the K-Means clustering algorithm using the LRFM (Length, Recency, Frequency, Monetary) model. The purpose is to group customers based on their transaction behavior to develop targeted and data-driven marketing strategies. Using transaction data from February 2022 to June 2023, the study processed LRFM scores for each customer and applied K-Means clustering with Elbow and Davies-Bouldin Index methods to determine the optimal number of clusters. The results identified five distinct customer segments with varying characteristics, such as lost customers, core customers, and new customers. A dashboard was developed to visualize segmentation insights and support strategic marketing decisions. This study supports the application of Business Intelligence and behavioral segmentation in improving customer understanding and enhancing digital marketing effectiveness.

Keywords : Customer Segmentation, LRFM, K-Means Clustering, Digital Marketing, Business Intelligence, the Icon.

References :

1. Yuliani, A. Ramli, and M. Rakib, “Determinants of Culinary Business Performance in Makassar City, Indonesia,” J. Econ. Financ. Account. Stud., vol. 5, no. 5, pp. 28–36, 2023, doi: 10.32996/jefas.2023.5.5.4.
2. S. Negash, “Business Intelligence,” Handb. Decis. Support Syst. 2, no. January, 2008, doi: 10.1007/978-3-540-48716-6.
3. M. I. Istiana, “Segmentasi Pelanggan menggunakan Algoritma K-Means Sebagai Dasar Strategi Pemasaran pada LAROIBA Seluler,” vol. 1, pp. 3–4, 2013.
4. T. Islam et al., The impact of corporate social responsibility on customer loyalty: The mediating role of corporate reputation, customer satisfaction, and trust, vol. 25, no. August. 2021. doi: 10.1016/j.spc.2020.07.019.
5. P. Kotler and K. L. Keller, Marketing Management. Pearson, 2016. doi: 10.1515/9783486801125.
6. Philip Kotler, Manajemen Pemasaran: Perspektif Asia, vol. 53, no. 9. 2019.
7. H. J. Watson and B. H. Wixom, “The current state of business intelligence,” Computer (Long. Beach. Calif)., vol. 40, no. 9, pp. 96–99, 2007, doi: 10.1109/MC.2007.331.
8. W. Yeoh and A. Koronios, “Critical success factors for business intelligence systems,” J. Comput. Inf. Syst., no. October, 2009.
9. H. Mukhtar, I. D. Pramaditya, W. S. Weisdiyanto, and S. H. Putra, “Algoritma K-Means untuk Pengelompokan Perilaku Customer,” J. Softw. Eng. Inf. Syst. ( SEIS ), vol. 4, no. 2, pp. 96–101, 2024, doi: 10.37859/seis.v4i2.7615.
10. I. Grady Favian and E. Suryani, “A Case Study of Applying Customer Segmentation in A Medical Equipment Industry,” IPTEK J. Proc. Ser., vol. 0, no. 3, p. 119, 2021, doi: 10.12962/j23546026.y2020i3.11139.
11. S. Perdana, S. Florentin, and A. Santoso, “ANALISIS SEGMENTASI PELANGGAN MENGGUNAKAN K-MEANS CLUSTERING STUDI KASUS APLIKASI ALFAGIFT,” Sebatik, vol. 26, no. 2, pp. 420–427, 2022, doi: 10.46984/sebatik.v26i2.2134.
12. M. Ashdaq, S. Alam, V. Aris, and N. F. Mandasari, “The Impact of Marketing through Social Media on Brand Attitudes: A Study of Cosmetics Products in Female Generation Z,” J. Econ. Financ. Manag. Stud., vol. 06, no. 08, pp. 3702–3709, 2023, doi: 10.47191/jefms/v6-i8-19.
13. D. Chaffey and F. Ellis-Chadwick, Digital Marketing : Strategy, Implementation and Practice. Pearson Education, 2015.
14. D. P. Ananda and S. Monalisa, “Segmentasi Pelanggan B2B dengan Model LRFM Menggunakan Algoritma Fuzzy C-Means pada Rotte Bakery,” J. Teknol. Inf. dan Ilmu Komput., vol. 10, no. 5, pp. 1139–1148, 2023, doi: 10.25126/jtiik.20231056569.
15. H. H. Chang and S.-F. Tsay, “Integrating of SOM and K-means in data mining clustering: An empirical study of CRM and profitability evaluation,” 2004.
16. M. Rakib, S. Bahruddin, S. Hastutik, and Sumarsih, “Strategi Pemasaran Bisnis,” no. March, p. 221, 2020.
17. P. Kotler, K. L. Keller, and A. Chernev, Marketing Management. Pearson Education, 2021.
18. F. F. Reichheld and P. Schefter, “E-Loyalty: Your secret weapon on the web,” Harv. Bus. Rev., vol. 78, no. 4, pp. 105–113, 2000.
19. M. Rakib, “Understanding the Impact of Digital Advertising, Product Difference And Product Image on Small Business Expansion: A Quantitative Investigation,” vol. 5, no. 7, pp. 102–111, 2023, doi: 10.35629/5252-0507102111.