International Journal of Research in Vocational Studies (IJRVOCAS)
Vol. 4 No. 2 (2024): IJRVOCAS - August

Customer Segmentation Using the K-means Clustering Algorithm and Recency Frequency Monetary Model at Pharmaceutical Product Wholesaler

Iqbal, Nur Muhammad (Unknown)
Iskandar, Yelita Anggiane (Unknown)
Zulvia, Ferani Eva (Unknown)

Article Info

Publish Date
31 Aug 2024

Abstract

PT Kimia Farma Trading and Distribution (KFTD) is a company engaged in the distribution and trading services of Indonesian health products, on a national scale. In 2022, the company aims to increase sales to be awarded as one of the top 3 national pharmaceutical product distributors by 2024. Their current strategy is to provide customers with delayed payment permission and integrated complaint services. However, the offers and services are the same for all customers which does not consider customer track record hence it is not cost-effective. One way to increase sales is by enhancing customer satisfaction and loyalty by implementing Customer Relationship Management (CRM) strategies. Several strategies can be carried out, namely analysis of associations related to pharmaceutical products, and analysis of customer segmentation and clustering of products. The method used in this study was the K-means clustering algorithm combined with the Recency Frequency Monetary (RFM) model. Experiments showed that the optimal clustering results are 4 therefore they are categorized into 4 customer segments, namely Superstar, Golden, Typical, and Occasional Customers.

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Journal Info
International Journal of Research in Vocational Studies (IJRVOCAS)
Website

Abbrev

ijrvocas

Publisher

Yayasan Ghalih Pelopor Pendidikan

Subject

Aerospace Engineering Automotive Engineering Biochemistry, Genetics & Molecular Biology Chemical Engineering, Chemistry & Bioengineering Civil Engineering, Building, Construction & Architecture Computer Science & IT Control & Systems Engineering Decision Sciences, Operations Research & Management Earth & Planetary Sciences Economics, Econometrics & Finance Education Electrical & Electronics Engineering Energy Engineering Environmental Science Industrial & Manufacturing Engineering Materials Science & Nanotechnology Mechanical Engineering Social Sciences Other

Description

The International Journal of Research in Vocational Studies (IJRVOCAS) is a double-blind peer-reviewed journal. This journal provides full open access to its content on the principle that making research freely and independently available to the science community and the public supports a greater ...