Data Mining and CRM

Overview

Data mining, data exploration and knowledge discovery are all terms that create an image of the demanding and sometimes tedious search to uncover insights that are neither obvious to competitors nor easy for competitors to duplicate. Customer relationship management depends on data analysis activities to uncover directions and opportunities and highlight warning indicators for CRM initiatives. CRM uses data mining to understand how to reach out to and communicate with customers. Data analyses can range from simple, intuitive determination of who to contact, when and where to applying complex algorithms in real-time to deliver customized responses to customer-initiated interaction. This paper reviews two broad categories of data analysis and shows how they might be used to prioritize CRM initiatives.