Data Mining in CRM

What is Data Mining? The process of determining useful patterns and relationships in big data through algorithms, to extract knowledge from data warehouses. Role of Data Mining in CRM: 1. Get a holistic view of customer life-cycle 2. More data will result in accurate models 3. Leverage forecasting and descriptive modeling techniques 4. Have a proactive approach with predictive analytics How will Data Mining Benefit my Business? 1. Conduct Basket Analysis for better stocking, store layout, and promotion strategies 2. Sales Forecasting to optimize your sales, supply chain and financial management 3. Predictive Lifecycle Management for each customer to segment them accordingly 4. Optimal Allocation of company’s resources for enhanced productivity and better ROI 5. Product Customization by predicting features that meet the customer’s demands 6. Database Marketing for a defined target market, personalized campaigns, and promotional offers 7. Predict Warranty Claims by the customers and their average cost to have efficient management of funds 8. Fraud detection by analyzing past fraudulent transactions and taking corrective measures Techniques of Data Mining in CRM 1. Clustering – Identify similar data sets and understand both similarities and differences in data to increase conversion rates 2. Classification – Gather all information about a data set and classify it into proper categories. 3. Anomaly Detection – Information that does not match the expected behavior or projected pattern, providing actionable information 4. Association Rule Learning – Uncover hidden patterns from the data to better understand your customer’s habits and predict their decisions 5. Regression – Find dependency between different data items and map out the effect of variables on each other. It helps in determining customer satisfaction levels and its impact on customer loyalty Read our entire blog here: https://www.rolustech.com/blog/data-mining-crm Read less