Track: Business Analytics

Abstract

The increase number of births in Indonesia during the pandemic era provided opportunities for baby equipment businesses. At the same time, online purchase transactions have also increased. This study aims to determine the segmentation and value of each customer segment using Customer Lifetime Value (CLV) and develop strategies for each customer segmentation in order to increase the value of business competitiveness. The K-Means Clustering method is used to segment customers into several clusters and the CLV value is used to determine the value of each customer segment with the RFM variable. Cluster deployment using Customer Value Matrix (CVM) is also carried out to ensure cluster characteristics. Secondary data is obtained from sales transactions. Analysis of product sales is carried out using the Association Rules method that results in one of the strategies in Customer Development. The research resulted in 5 clusters for customers with 16 strategies for the whole cluster. Cross-selling strategy is the most recommended strategy.