Application of Data Mining in Customer Relationships Management (CRM)

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.