The Segmentation of Garuda Frequent Flyer

Abstract

Airline loyalty program such as frequent flyer program, is a marketing strategy used by airline industries to maximize their profit and to satisfy their loyal customers. Garuda Frequent Flyer is a program presented by Garuda Indonesia as an appreciation to their loyal customers. The model is created to segment customers based on key airline industry drivers such as yield, frequency, product, distance and activity pattern. RFM analysis is used to score individuals based on Recency, Frequency and Monetary using Principal Component Analysis. This score is used to segment customers using k-means algorithm to interpret Garuda Frequent Flyer member purchasing behavior which is important for marketing strategy.