DATA MINING IN THE CRM FRAMEWORK
Data mining can provide customer insight, which is vital for establishing an effective
CRM strategy. It can lead to personalized interactions with customers and hence
increased satisfaction and profitable customer relationships through data analysis.
It can support an ‘individualized’ and optimized customer management throughout
all the phases of the customer lifecycle, from the acquisition and establishment of
a strong relationship to the prevention of attrition and the winning back of lost
customers. Marketers strive to get a greater market share and a greater share of
their customers. In plain words, they are responsible for getting, developing, and
keeping the customers. Data mining models can help in all these tasks, as shown
in Figure 1.1.
More specifically, the marketing activities that can be supported with the use
of data mining include the following topics.