Machine Learning Mini Batch K-means and Business Intelligence Utilization for Credit Card Customer Segmentation
Year: 2021
Type: article
Abstract: An effective marketing strategy is a method to identify the customers well. One of the methods is by performing a customer segmentation. This study provided an illustration of customer segmentation based on the RFM (Recency, Frequency, Monetary) analysis using a machine learning clustering that can be combined with customer segmentation based on demography, geography, and customer habit through data warehouse-based business intelligence. The purpose of classifying the customers based on the RFM and machine learning clustering analyses was to make a customer level. Meanwhile, customer segmentation based on demography, geography, and behavior was to classify the customers with the same characteristics. The combination of both provided a better analysis result in understanding customers. This study also showed a result that minibatch k-means was the machine learning model with the rapid performance in clustering 3-dimension data, namely recency, frequency, and monetary.
Institution: Universitas Pradita
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: diamond
OpenAlex ID: W3211296622