Open AccessThe Analyze of Relationship between Revenue and Customer Payment Methods in Small Medium Enterprise Based on Clustering K-Means
Author(s) -
Fitri Marisa,
Sabrina Ahmad,
Zeratul Izzah Mohd Yusof,
Tubagus Mohammad Akhriza,
Wiwin Purnomowati,
Rakesh Kumar Pandey
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1908/1/012021
Subject(s) - revenue , payment , business , cluster analysis , profit (economics) , value (mathematics) , computer science , finance , microeconomics , economics , machine learning
Business capital and revenue are not only the decisive of the health of SMEs but also they must be balanced. In general, customers find their benefit from the flexible payment methods while on the other hand the SMEs should get their benefit too. So that, it needs to be studied whether it is necessary for SMEs to get their profit in accordance to this situation. One of the methods that suitable to be applied is by applying customer groupings based on revenue and payment namely the K-means clustering method since it can raise several groups that have not been known before. This information is useful for SMEs to be utilized based on their needs. Data in this study were gathered from customer attributes, number of transactions, and payment methods. The number of centroids was 3. The grouping results were stopped at the 5 th iteration. The finding showed that the ratio value of the 4 th iteration and the 5 th iteration having the same ratio value, 0.07393. From the results of the iterations can be found; first, based on the customers’ number, the groups can be classified into three C1(18%), C2 (45%), C3 (36%). Second, based on the average number of transactions, post-paid payments was in the first rank (12.7 / week). From the results, it can be analyzed that this situation is burdensome for SMEs because the more the number of transactions, the more investment must be prepared for accounts receivable.