Integration K-Means Clustering Method and Elbow Method for Identification of the Best Customer Profile Cluster

Abstract

Clustering is a data mining technique used to analyse data that has variations and the number of lots. Clustering was process of grouping data into a cluster, so they contained data that is as similar as possible and different from other cluster objects. SMEs Indonesia has a variety of customers, but SMEs do not have the mapping of these customers so they did not know which customers are loyal or otherwise. Customer mapping is a grouping of customer profiling to facilitate analysis and policy of SMEs in the production of goods, especially batik sales. Researchers will use a combination of K-Means method with elbow to improve efficient and effective k-means performance in processing large amounts of data. K-Means Clustering is a localized optimization method that is sensitive to the selection of the starting position from the midpoint of the cluster. So choosing the starting position from the midpoint of a bad cluster will result in K-Means Clustering algorithm resulting in high errors and poor cluster results. The K-means algorithm has problems in determining the best number of clusters. So Elbow looks for the best number of clusters on the K-means method. Based on the results obtained from the process in determining the best number of clusters with elbow method can produce the same number of clusters K on the amount of different data. The result of determining the best number of clusters with elbow method will be the default for characteristic process based on case study. Measurement of k-means value of k-means has resulted in the best clusters based on SSE values on 500 clusters of batik visitors. The result shows the cluster has a sharp decrease is at K = 3, so K as the cut-off point as the best cluster.