Application of Data Mining in Customer Relationships Management (CRM)

Abstract

Data mining is a continuous, iterative process that is the very core of business

intelligence. It involves the use of data mining software, sound methodology and human

creativity to achieve new insight through the exploration of data to uncover patterns,

relationships, anomalies and dependencies. Data mining helps marketing professionals

improve their understanding of customer behavior. In turn, this better understanding allows

them to target marketing campaigns more accurately and to align campaigns more closely

with the needs, wants and attitudes of customers and prospects. Data mining is part of a

much larger series of steps that takes place between a company and its customers. The way in

which data mining impacts a business depends on the business process, not the data mining

process. Data mining extracts information from a database that the user did not know

existed. Relationships between variables and customer behaviors that are non-intuitive are

the jewels that data mining hopes to find.