Customer Grouping for Customer Relationship Management Optimization with the K-Means Algorithm

Abstract

Customer Relationship Management (CRM) is a tool that can help organizations/companies to achieve their goals. Models that can be developed in relationships are trust and commitment. Trust can come when both parties share experiences. The rapid development of information and technology has led to significant changes in business competition. Rani 2 Supermarkets are modern shopping centers that provide a variety of household needs at low prices and quality. Rani Supermarkets is located at Jl. Zeinizein Painan Pesisir Selatan District. The Rani 2 Supermarket has implemented strategies to build customer loyalty, such as providing additional discounts, facilitating transactions, giving certain customer cards. The problem is that supermarkets don't know which customers are loyal and haven't based it on a pattern. One method that can be used in analyzing CRM is data mining. Clustering with the K-Means grouping technique will produce customer information based on clusters. This cluster is divided into two, namely productive customer clusters and less productive customer clusters. The problem to be solved with this method is how knowledge is useful for the company, namely increasing customer loyalty. Through the K-Means Cluster Technique, this will be used as material for implementing a customer relationship management strategy with the aim of increasing customer loyalty and sales volume