USING FUZZY C-MEANS ALGORITHM FOR MAPPING GROUPS

OF ONLINE RETAIL CONSUMERS BEHAVIOR

Achmad Reza Mardika, Student ID Number: 06.2014.1.06373

Dian Puspita Hapsari, Advisor ID Number: 153076
Weny M. Rahmawati, Advisor ID Number: 153101
Department of Informatics Engineering, Faculty of Information Technology
reza.mardika.rm@gmail.com

ABSTRACT

Online retail means sell-buy transaction from customers to sellers through

internet. Some recent years, the development of online retail grows so rapid that
many online retail companies are interested to have data mining to cluster their
customers based on the similar characteristics and identify their differences for the
sake of marketing strategy development. The aim of this research is to investigate
customers mapping in regard to customer relationship management. The
researcher employed RFM Analysis for customers assessment based on recency,
frequency, and monetary, as well as Fuzzy C-Means algorithm for clustering
process. Fuzzy C-Means is a clustering algorithm based on member levels. The
result of clustering process obtained six clusters based on the six characteristics of
customers. The quality of clustering results was then tested by SSE (Sum Squared
error) algorithm. The six clusters tested by SSE got validity by 58071.3. This
validity was then compared with different parameters of c and w. The most
optimum cluster was resulted from parameters of 4 clusters and 2 weighting
exponents as they got the smallest cluster validity by 22566.5.

Keywords: Online retail, RFM Analysis, Fuzzy C-Means, clustering, SSE

Translated from the original by

ITATS Language Centre

192/Abs/ILC/VII/2018