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Implementation of Decision Tree Algorithm in Customer Recency, Frequency, Monetary, and Cost Profiling: a Case Study of Plastic Packing Industry
Windu Gata(a), Iskandar(b), Hasan Basri(c), Dewi Ayu Puspitawati(d), Syamsu Hidayat(e), Walim(f)

STMIK Nusa Mandiri Jakarta(a,d,e)
Jl. Damai No.8 Warung Jati Barat Jakarta Selatan DKI Jakarta, Telp(021-78839502).

Sekolah Tinggi Teknologi Muhammadiyah Cileungsi (STTMC) (b).
Jln.Anggrek No.25 Cileungsi Kabupaten Bogor 16820, Tlp. (021) 82495502

Universitas Bina Sarana Informatika(c,f).
Jl. Kamal Raya No.18, RT.6/RW.3, Ringroad Barat, Cengkareng, Kota Jakarta Barat, Daerah Khusus Ibukota Jakarta 11730.


Abstract

This study aims to model the form of customer profile classification on companies using the C 4.5 and Random Forest algorithms to produce the best profile classification model from customers to sess a pattern of assessments of manual assessments so far. The general model used in customer grouping is the RFM (Recency, Frequency, Monetary) model, which is grouped based on the latest customer visits, the frequency of visits, and income received by the company, but in this case there is C (Cost) as new attribute, so the customer grouping model becomes RFM-C model approach. The use of CRISP-DM data mining methodology is the methodology used in this study, where the design of the C4.5 algorithm and Random Forest algorithm is compared and validated using 10-fold validation, in this case the application used is RapidMiner. While the 172,261 customer transaction data collected for two years. After testing the two algorithms, the results obtained are the use of the C4.5 algorithm for companies to classify RFM-C which is expected to predict because it has higher accuracy and kappa. And now these plastic packaging companies can predict customer transaction data based on historical data that has been processed.

Keywords: Customer Profiling, RFM-C, Algorithm Tree, C4.5, Random Forest

Topic: Informatic and Information System

Link: https://ifory.id/abstract/dZ2tP8XgaHV7

Conference: 2nd International Conference on Informatics, Engineering, Science and Technology (INCITEST 2019)

Plain Format | Corresponding Author (Iskandar -)

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