Implementation of the K-Means Clustering Technique Using RFM Attributes to Enhance Donor Retention at Masjid Nusantara
Iqbal Muhammad Farisi, Sri Supatmi · 2024
The efforts aimed at donor retention are a fundamental aspect of Customer Relationship Management (CRM) strategies that enhance organizational effectiveness. This research concentrated on entities that have traditionally emphasized the acquisition of new donors over the retention of current donors, a methodology that can hinder long-term viability. By categorizing donors and formulating targeted retention strategies, this research seeks to redirect the emphases from donor acquisition to retention, by using the K -Means clustering methodology along with the RFM (Recency, Frequency, Monetary) framework. The descriptive research adopting a quantitative paradigm followed the CRISP-DM process, which included the data selection, preprocessing, transformation, processing, and analysis stages. The data analysis found four distinct clusters of donors, each of which is equipped with customized retention strategies based on their respective RFM scores. These strategies of retention contribute to pragmatic outcomes by empowering organizations to increase donor loyalty, improve donor engagement, and ultimately, facilitate their mission of building and maintaining mosques. This study demonstrates that prioritizing donor retention, which is supported by an empirically based methodology, has potential to enhance an organization’s performance and sustainable success.