Donor Segmentation in Indonesia Based on Recency, Frequency, Monetary, and Age (RFMA) Using the K-Means Clustering Algorithm
Achmad Solichin, Jenar Suseno, Hari Soetanto · 2023
Dompet Dhuafa Republika is a National Amil Zakat Institution whose operations collect donations in the form of zakat, donation, humanity, endowments, and sacrifices from the community. The collected donations are then distributed through programs according to their designation. The success of its activities is highly dependent on donors who donate. To properly implement programs, it is essential to maintain the loyalty and consistency of donor donations. This study looks at donor segmentation using the Recency Frequency Monetary (RFM) model by adding the donor's age variable using K-Means Clustering. The data source comes from donation transaction data for 2021, which consists of 83,630 lines of donor data and 239,177 lines of donation transaction data. Donor data segmentation produces four clusters. In the first cluster, 53% of donors were characterized by being 45 years old, rarely donating, and the average donation amount was IDR 1.4 million. The second cluster, with 20%, has the characteristics of being 39 years old; the average donation amount is only once per year, and the average donation amount is only IDR 600 thousand. The third cluster of 4% is the donor who makes the most frequent donations, with an average total contribution of up to IDR 3.6 million. The fourth cluster consists of 23% of data from donors who frequently make donations, with an average donation of IDR 2.6 million. The clustering results are useful for institutions to develop strategies to increase the number of donations and distribution programs.