Fuzzy C-Means Clustering for Customer Segmentation

Abstract

The right marketing strategy for a company can
increase revenue for the company. A product will not be bought
even known if the product sold is not clear its usefulness.
Therefore, market segmentation is used to predict market
demand based on market groupings such as Measurability
(buyer characteristics and characteristics), Accestability
(segmentation selected by company) and Substantiability (large
segment and profitable to serve).Customer segmentation is used
to determine the status of potential customers to choose the right
market strategy for the company. Clustering method used is
fuzzy c-means, this method is determined based on the existence
of each data point by the degree of membership. Segmentation
using this clustering method will generate customer labels such as
superstar, golden, typical, occasional, everyday, and dormant.