K-Medoids Customer Segmentation Algorithm by Utilizing Customer Relationship Management

Abstract

Sales is an activity that needs to be considered in the company, because the end of production is sales. The more sales that occur, the need for a system that can make it easier to process sales. At this time, motorbikes are one of the profitable sales to market. Central Motor Yamaha is present as a dealer that sells various motorcycle products, with the cheapest and original product claims. Customer segmentation is used at the Lubuk Begalung Yamaha Motor Center to group customers, which are processed from sales transaction data. By utilizing Customer Relationship Management (CRM) provides interaction between dealers and customers to increase sales. CRM comes in the form of a system that makes it easier for customers to make purchases, which has various features in it, of course it makes it very easy for customers to use. One method that can be used in CRM is data mining. With the k-medoids method clustering technique produces priority and ordinary customer clusters. Problems at Sentral Motor Yamaha Lubuk Begalung can be resolved using this method, of course it is useful for the company, namely attracting customers with the various features it contains. By implementing the K-Medoids grouping technique, it is hoped that it will become a customer relationship management strategy with the aim of attracting new customers