Application of Data Mining in Marketing and Managing Customer Relationship

Development of new technologies has made relationship marketing a reality in recent years. Technologies such as data warehousing, data mining, and campaign management software have made customer relationship management a new area where firms can gain competitive advantages. Particularly through data mining which is the extraction of hidden knowledge or predictive information from large databases, organizations can identify valuable customers, predict future behaviors, and enable firms to make proactive and knowledge-driven decisions. Various techniques exist among data mining approach, each with their own advantages and challenges for different types of applications in business and marketing context. The focus of this paper is to describe the role of the data mining in improving marketing performance and customer relationship management by advancing the firms’ ability to form effective relationships with their valuable customers. This paper starts with an introduction of data mining and essential roles of CRM in today’s competitive market. Then, it describes data mining process, tasks and techniques comprehensively. Finally, it sums up with applications of data mining in marketing and CRM.

Keywords:

Marketing , Customer relationship management , Data mining