ABSTRACT
The digital revenue growth of PT. Telkomsel in Sulawesi Region (+ 52.56%) requires appropriate marketing strategy. Customer service segmentation is significant to divide customers based on their characteristics. This study aims at determining the customer segmentation model of Telkomsel in Sulawesi Region using the K-Medoid algorithm and determining marketing strategies to maintain existing customers and increase their usage of digital services. The results obtained by three customer segments with a value of 0.72 silhouette coefficient was in the good category, with the accuracy value of 93.44%. Potential to Lost Segment is a potential customer segment to churn, so it is suggested to expand and increase 4G LTE network coverage. The High Value Loyal Customer Segment is the main customer who is recommended to get rewards. The High Value New Customer Segment is the new customer segment with social media use, hence, expanding digital channels in promoting the services is recommended.
