Abstract: Customer relationship management is not only a management concept, but also a new management mechanism aimed at improving the relationship between enterprises and customers, but also a management software and technology. Data mining can predict future trends and behaviors, which can well support people's decision-making. The success of CRM lies in successful data warehouses and data mining.
Keywords: e-commerce; customer relationship management; data mining
Summarization Of CRM And Data Mining
YAN Yan, HU Hengsheng, CHEN Yuexin
（School of Computer Science ,National University of Defense Technology, Changsha410073）【Abstract】CRM is not only a concept of management, but also a new mechanism of management, using to improve the relationship between the organization and the customers, as well as a software and technology of management. Data Mining can forecast the trend and behaviors,thereby nicely support people's decision.
A successful CRM is due to the success of Data Warehousing,Data Mining.
【Keywords】E-business; CRM(Customer Relationship Management);Data Mining
1. Driver of e-commerce and introduction of customer relationship management
The rapid development of the Internet has brought the entire world economy into a period of rapid growth that has never been seen before. With the maturity of network technology, the concept of e-commerce has gradually become popular. E-commerce is emerging rapidly, and the tide of e-commerce is rapidly changing the traditional business model around the world. Online shopping, B2B, and B2C have become the focus of everyone's discussion. In the next 20 years, the expansion of e-commerce will form an exponential upward curve.
The e-commerce system provides a new way for merchants to communicate with customers, but the impact brought by e-commerce is revolutionary and poses severe challenges to traditional enterprises: requiring corporate managers to look at future customers, future competitors, and future technical tools with a new mindset. Just automating existing business processes does not mean that they can achieve success in the "new economy" era. What e-commerce requires is the update and revolution of management thinking that matches it. This is not easy for traditional enterprises that have established a certain scale.
The focus of traditional enterprise management is often in the backend, and the ERP system helps them automate this internal business process and improve production efficiency. As for the front desk, we often don’t pay enough attention to it. When faced with such things as: what kind of product is the most popular, what are the reasons, how many repeat customers are, what are the most profitable customers, and what are the problems with after-sales service, most companies can only rely on experience to speculate.
Now the competition on the Internet is only between the point of the mouse. How can we win in the competition for e-commerce? Customer Relationship Management (CRM) that can provide customer resources and related data analysis has become the focus. As a customer relationship management specializing in managing the front desk of the enterprise, it provides enterprises with a system that collects, analyzes and utilizes various customer information, helps enterprises make full use of their customer management resources, and also provides scientific means and methods for enterprises to face customers calmly and freely in the era of e-commerce.
A large number of surveys and industry analysts have made it clear that building and maintaining customer relationships is the only and most important basis for achieving a competitive advantage, a direct result of the transformation of networked economy and e-commerce to traditional business models.
2. Concept and characteristics of customer relationship management
2.1. What is customer relationship management (CRM)?
Although there is no very unified definition of customer relationship management (CRM), as the name implies, CRM refers to the way an enterprise communicates with its customers, and it is implemented in areas related to customers such as marketing, sales, service and technical support of the enterprise.
Customer Relationship Management (CRM) is first and foremost a management concept that originated from Western marketing theory, and was born and developed in the United States. Its core idea is to regard the company's customers (including the end customers, distributors and partners) as the most important corporate resources, and to meet customers' needs through complete customer service and in-depth customer analysis, ensuring the lifelong value of customers.
Customer relationship management (CRM) is also a new management mechanism aimed at improving the relationship between enterprises and customers. It is implemented in the areas related to customers such as marketing, sales, service and technical support of enterprises, and requires enterprises to shift from a "product-centric" model to a "customer-centric" model. That is to say, the focus of enterprises should shift from internal operations to customer relationships.
Customer Relationship Management (CRM) is also a management software and technology. It closely combines best business practices with data mining, data warehouse, one-to-one marketing, sales automation and other information technologies, providing a business automation solution for the fields of enterprise sales, customer service and decision support, giving enterprises a customer-oriented frontier based on e-commerce, thereby successfully realizing the transformation from a traditional enterprise model to a modern enterprise model based on e-commerce.
The goal of CRM is to attract and maintain more customers by providing faster and more thoughtful services on the one hand; on the other hand, reduce the cost of the enterprise through comprehensive management of business processes. A well-designed CRM solution can help companies improve communication methods with existing customers while expanding new revenue sources. According to statistics from the International CRM Forum, the successful implementation of CRM in the international market can bring 6% market share growth to the corresponding enterprises every year; increase the basic service charges of 9 to 10%; and exceed the development speed of enterprises with low service levels by 2 times.
2.2. Why implement CRM solutions?
Today, sales, marketing, and customer service/support departments in many businesses work as separate entities. Due to the existence of departmental boundaries, these different business functions often have difficulty focusing on customers in a coordinated way. For example, what happens if a salesperson blindly calls a customer and sells a product without knowing that the customer is annoyed by several unresolved service issues? But by providing a customer communication and communication platform shared by various business departments, the situation is very different, and CRM solutions will prevent such problems from happening.
2.3. Characteristics of CRM
①One-to-one marketing
"One-to-one marketing" means that companies adjust their business behavior accordingly according to their customers' special needs. "One-to-one marketing" requires companies to establish a learning relationship with each customer. The so-called learning relationship means that every time a company interacts with a customer, the company increases its understanding of the customer, and the customer constantly raises demands, and the company continuously improves its products and services according to this demand, so that the company can continuously improve its ability to satisfy the customer.
Amazon Online Bookstore () uses the Internet all over the world to use advanced CRM system software to perform "one-to-one marketing". Faced with tens of thousands of customers, Amazon Online Bookstore has "amazing memory" and "high intelligence", thus establishing a wide "one-to-one" learning relationship with customers, which makes the bookstore's customer retention rate reach 65%.
② Highly integrated communication channels
CRM combines multiple channels for communication with customers, such as face-to-face, telephone contact, E-mail, Fax or letters, and web access, so that companies can communicate with them using appropriate channels according to their preferences. But no matter which channel is used, the communication between customers and enterprises must be seamless, coherent, and efficient.
③Unified shared information resources
All data of CRM solutions should be centrally stored and managed. The experience of different departments after contacting customers must be shared with other departments immediately. In this way, the current customer information can be used in real time for all employees facing customers, so that customers will not ask about Plan A on the phone, but when the customer is online, the company recommends Plan B. A centralized customer information library can also ensure data consistency between different business departments and different application software functional modules.
④Business intelligence data analysis and processing
Faced with a vast number of customer and corporate marketing, sales and service information, it is unimaginable without a data analysis and processing system with a high level of business intelligence. CRM closely combines the best business practices with data mining, data warehouse, one-to-one marketing, sales automation and other information technologies. By fully exploring the personalities and rules of customers' business behavior, we continuously find and expand customers' profit points and profit space; on the other hand, intelligent data analysis and processing itself is also an efficient process for enterprises to "learn" from customers. With the maturity of CRM software, future CRM software will no longer only help automate business processes, but also an analysis tool that can help managers make decisions.
⑤ Support for web-based functions
The increasing use of the Web in internal and external communications and transactions has made Web functionality a key factor in CRM solutions. The Web is not only indispensable for e-commerce channels, but also very important in infrastructure. Users of CRM application software, including customers and employees, can access enterprise applications anytime, anywhere. This access should be achieved through a standard web browser that can be easily used without much training.
CRM allows enterprises to sell and serve customers directly through the Web. Enterprises can also take advantage of the Web's e-commerce advantages to self-service, self-service sales, potential customer development, time registration, contract renewal, service requests, and telephone feedback. All of this greatly expands traditional marketing, sales and service channels in time and space, allowing companies to provide global access to 24 hours a day (7X24) 7 days a week, thereby maximizing corporate earnings opportunities.
The above characteristics of CRM are not isolated from each other, but are a whole that supports each other and is highly integrated, and together form the powerful functions of CRM.
3. CRM implementation and data mining technology
3.1. Composition of CRM solution
As enterprise management system software, CRM is usually composed of the following three parts:
"Sales Distributor Management, SDM)"
This module is dominated by marketing and sales business, and manages the sales process in detail. It is an important tool for sales managers to manage and automate sales sales staff. It realizes centralized management and collaborative management of customers during the sales process. Sales managers can analyze sales situation at any time. The specific functions include customer reception management, quotation processing, sales contract management, collection order processing, comprehensive query function, and comprehensive statistical function. The goal is to improve the effectiveness of sales.
"Customer Service Management, CSM"
This module mainly manages the after-sales service of the enterprise, speeds up the response speed of after-sales service, improves customer satisfaction, assesses service personnel, and strengthens supervision of product quality.
The most typical representative of a customer service system is the call center environment, which is usually deployed through a call center environment and realizes self-service based on telephone and web. They enable businesses to meet the unique needs of their customers at faster speeds and higher efficiency. Since in most cases, customer loyalty and profitability from that customer depends on whether the company can provide quality service, customer service and support become critical to many companies.
"Enterprise Decision Information System (EIS)"
With the advent of the e-commerce era and the automation of business operation processes in various industries, a large amount of business data in dozens or hundreds of GB have been generated within the enterprise. This data and the resulting information are the wealth of the enterprise. It truthfully records the essential status of the enterprise's operation. However, facing such a massive amount of data, people are forced to constantly find new tools to explore the operational laws of the enterprise, provide valuable knowledge for business decisions, and enable enterprises to make profits. A powerful tool that can meet this urgent need of enterprises is data mining.
3.2. What is data mining?
To be precise, Data Mining, also known as Knowledge Discovery in Database (KDD), refers to extracting implicit, unknown, non-trivial and potentially valuable information or models from large databases or data warehouses. It is a new field with great application value in database research, integrating theories and technologies in multiple fields such as databases, artificial intelligence, machine learning, and statistics.
The data collected from CRM software is the best way to help companies understand customers. The so-called "one-to-one" sales also focus on understanding customers' needs in order to contribute to their preferences to facilitate transactions. Data is dead, but if some mathematical or statistical models can be used to discover the relationships and rules in the data and predict future development trends based on existing data, it can become a reference for managers to make decisions.
Data mining tools can predict future trends and behaviors, which can support people's decision-making well. For example, after analyzing the entire company's database system, data mining tools can answer questions such as "Which customer is most likely to respond to our company's email promotions, why?" Some data mining tools can also solve traditional problems that consume a lot of manual time, because they can quickly browse the entire database and find some extremely useful information that experts do not easily detect. Therefore, it can be said that the success of CRM lies in successful data warehouses, data mining and knowledge discovery.
3.3. Application of data mining in CRM
More typical data mining methods include correlation analysis, sequence pattern analysis, classification analysis, cluster analysis, etc. They can be applied to various areas and stages of customer-centric enterprise decision analysis and management.
① Correlation analysis
Association analysis, that is, data mining is used using association rules. The purpose of correlation analysis is to mine the interrelationships hidden between data. It can discover knowledge in the database such as "90% of customers purchase product A while purchasing product B in a purchase activity."
②Sequence pattern analysis
Sequence pattern analysis and association analysis are similar, but the focus is on analyzing the previous and subsequent sequence relationships between the data. It can find knowledge in the database such as "In a certain period of time, a customer purchases product A, then purchases product B, and then purchases product C, that is, the sequence A→B→C appears at a higher frequency". The problem described by sequence pattern analysis is: in a given transaction sequence database, each sequence is a set of transaction sets arranged according to transaction time, and the mining sequence function acts on this transaction sequence database and returns the high-frequency sequences that appear in the database. When performing sequence mode analysis, the user also needs to input the minimum confidence C and the minimum support S.
③Classification analysis
There is a database and a set of categories (tags) with different characteristics, and each record in the database is assigned a category of tags, such a database is called a sample database or training set. Classification analysis is to analyze the data in the sample database, make an accurate description of each category, or establish an analysis model or mine classification rules, and then use this classification rule to classify records in other databases.
④Clustering analysis
Clustering analysis inputs a set of unclassified records, and these records should be divided into several categories without knowing in advance. By analyzing the record data in the database, reasonably dividing the record set according to certain classification rules, and determining the category of each record. The classification rules it adopts are determined by cluster analysis tools. Using different clustering methods, different division results may be available for the same record set.
The ideal starting point for applying data mining technology is to start with a data warehouse, which should store the contract information of all customers and should also have relevant data from corresponding market competitors. Data mining can directly track data and assist users in making business decisions quickly. Users can also constantly discover better behavior patterns when updating data and apply them to future decisions.
4. Current development status and prospects of CRM
4.1. Current development status of CRM
The CRM management concept and its value are valued by more and more companies. Since 1997, the global CRM market has been in explosive and rapid growth. China's CRM started late, but it still showed strong development momentum. Its significant value-enhancing ability has been recognized by the industry and is about to enter a booming period of development and a new tracking boom will be formed.
According to a recent research report, more than two-thirds of the companies surveyed expect to change their customer relationship management model over the next five years, while more than three-quarters of the companies plan to integrate a "customer-facing" information management system and other parts of their organization.
4.2. Prospect
Forecast of the future direction of CRM products: The information systems in the front and backend of CRM products will be further integrated in the future; the functions of the call center will be greatly expanded, truly realizing the integration of telephone, www, email, fax, wireless communication, direct contact, etc., and becoming a contact center; network-based self-service will become an important way for enterprises to provide services to users...
As a converged concept across systems such as knowledge management, business operations and e-commerce, customer relationship management is developing at an unprecedented speed and expanding the user base. In the fierce market competition, CRM is gradually becoming the fundamental and key to the survival of modern enterprises.
Keywords: e-commerce; customer relationship management; data mining
Summarization Of CRM And Data Mining
YAN Yan, HU Hengsheng, CHEN Yuexin
（School of Computer Science ,National University of Defense Technology, Changsha410073）【Abstract】CRM is not only a concept of management, but also a new mechanism of management, using to improve the relationship between the organization and the customers, as well as a software and technology of management. Data Mining can forecast the trend and behaviors,thereby nicely support people's decision.
A successful CRM is due to the success of Data Warehousing,Data Mining.
【Keywords】E-business; CRM(Customer Relationship Management);Data Mining
1. Driver of e-commerce and introduction of customer relationship management
The rapid development of the Internet has brought the entire world economy into a period of rapid growth that has never been seen before. With the maturity of network technology, the concept of e-commerce has gradually become popular. E-commerce is emerging rapidly, and the tide of e-commerce is rapidly changing the traditional business model around the world. Online shopping, B2B, and B2C have become the focus of everyone's discussion. In the next 20 years, the expansion of e-commerce will form an exponential upward curve.
The e-commerce system provides a new way for merchants to communicate with customers, but the impact brought by e-commerce is revolutionary and poses severe challenges to traditional enterprises: requiring corporate managers to look at future customers, future competitors, and future technical tools with a new mindset. Just automating existing business processes does not mean that they can achieve success in the "new economy" era. What e-commerce requires is the update and revolution of management thinking that matches it. This is not easy for traditional enterprises that have established a certain scale.
The focus of traditional enterprise management is often in the backend, and the ERP system helps them automate this internal business process and improve production efficiency. As for the front desk, we often don’t pay enough attention to it. When faced with such things as: what kind of product is the most popular, what are the reasons, how many repeat customers are, what are the most profitable customers, and what are the problems with after-sales service, most companies can only rely on experience to speculate.
Now the competition on the Internet is only between the point of the mouse. How can we win in the competition for e-commerce? Customer Relationship Management (CRM) that can provide customer resources and related data analysis has become the focus. As a customer relationship management specializing in managing the front desk of the enterprise, it provides enterprises with a system that collects, analyzes and utilizes various customer information, helps enterprises make full use of their customer management resources, and also provides scientific means and methods for enterprises to face customers calmly and freely in the era of e-commerce.
A large number of surveys and industry analysts have made it clear that building and maintaining customer relationships is the only and most important basis for achieving a competitive advantage, a direct result of the transformation of networked economy and e-commerce to traditional business models.
2. Concept and characteristics of customer relationship management
2.1. What is customer relationship management (CRM)?
Although there is no very unified definition of customer relationship management (CRM), as the name implies, CRM refers to the way an enterprise communicates with its customers, and it is implemented in areas related to customers such as marketing, sales, service and technical support of the enterprise.
Customer Relationship Management (CRM) is first and foremost a management concept that originated from Western marketing theory, and was born and developed in the United States. Its core idea is to regard the company's customers (including the end customers, distributors and partners) as the most important corporate resources, and to meet customers' needs through complete customer service and in-depth customer analysis, ensuring the lifelong value of customers.
Customer relationship management (CRM) is also a new management mechanism aimed at improving the relationship between enterprises and customers. It is implemented in the areas related to customers such as marketing, sales, service and technical support of enterprises, and requires enterprises to shift from a "product-centric" model to a "customer-centric" model. That is to say, the focus of enterprises should shift from internal operations to customer relationships.
Customer Relationship Management (CRM) is also a management software and technology. It closely combines best business practices with data mining, data warehouse, one-to-one marketing, sales automation and other information technologies, providing a business automation solution for the fields of enterprise sales, customer service and decision support, giving enterprises a customer-oriented frontier based on e-commerce, thereby successfully realizing the transformation from a traditional enterprise model to a modern enterprise model based on e-commerce.
The goal of CRM is to attract and maintain more customers by providing faster and more thoughtful services on the one hand; on the other hand, reduce the cost of the enterprise through comprehensive management of business processes. A well-designed CRM solution can help companies improve communication methods with existing customers while expanding new revenue sources. According to statistics from the International CRM Forum, the successful implementation of CRM in the international market can bring 6% market share growth to the corresponding enterprises every year; increase the basic service charges of 9 to 10%; and exceed the development speed of enterprises with low service levels by 2 times.
2.2. Why implement CRM solutions?
Today, sales, marketing, and customer service/support departments in many businesses work as separate entities. Due to the existence of departmental boundaries, these different business functions often have difficulty focusing on customers in a coordinated way. For example, what happens if a salesperson blindly calls a customer and sells a product without knowing that the customer is annoyed by several unresolved service issues? But by providing a customer communication and communication platform shared by various business departments, the situation is very different, and CRM solutions will prevent such problems from happening.
2.3. Characteristics of CRM
①One-to-one marketing
"One-to-one marketing" means that companies adjust their business behavior accordingly according to their customers' special needs. "One-to-one marketing" requires companies to establish a learning relationship with each customer. The so-called learning relationship means that every time a company interacts with a customer, the company increases its understanding of the customer, and the customer constantly raises demands, and the company continuously improves its products and services according to this demand, so that the company can continuously improve its ability to satisfy the customer.
Amazon Online Bookstore () uses the Internet all over the world to use advanced CRM system software to perform "one-to-one marketing". Faced with tens of thousands of customers, Amazon Online Bookstore has "amazing memory" and "high intelligence", thus establishing a wide "one-to-one" learning relationship with customers, which makes the bookstore's customer retention rate reach 65%.
② Highly integrated communication channels
CRM combines multiple channels for communication with customers, such as face-to-face, telephone contact, E-mail, Fax or letters, and web access, so that companies can communicate with them using appropriate channels according to their preferences. But no matter which channel is used, the communication between customers and enterprises must be seamless, coherent, and efficient.
③Unified shared information resources
All data of CRM solutions should be centrally stored and managed. The experience of different departments after contacting customers must be shared with other departments immediately. In this way, the current customer information can be used in real time for all employees facing customers, so that customers will not ask about Plan A on the phone, but when the customer is online, the company recommends Plan B. A centralized customer information library can also ensure data consistency between different business departments and different application software functional modules.
④Business intelligence data analysis and processing
Faced with a vast number of customer and corporate marketing, sales and service information, it is unimaginable without a data analysis and processing system with a high level of business intelligence. CRM closely combines the best business practices with data mining, data warehouse, one-to-one marketing, sales automation and other information technologies. By fully exploring the personalities and rules of customers' business behavior, we continuously find and expand customers' profit points and profit space; on the other hand, intelligent data analysis and processing itself is also an efficient process for enterprises to "learn" from customers. With the maturity of CRM software, future CRM software will no longer only help automate business processes, but also an analysis tool that can help managers make decisions.
⑤ Support for web-based functions
The increasing use of the Web in internal and external communications and transactions has made Web functionality a key factor in CRM solutions. The Web is not only indispensable for e-commerce channels, but also very important in infrastructure. Users of CRM application software, including customers and employees, can access enterprise applications anytime, anywhere. This access should be achieved through a standard web browser that can be easily used without much training.
CRM allows enterprises to sell and serve customers directly through the Web. Enterprises can also take advantage of the Web's e-commerce advantages to self-service, self-service sales, potential customer development, time registration, contract renewal, service requests, and telephone feedback. All of this greatly expands traditional marketing, sales and service channels in time and space, allowing companies to provide global access to 24 hours a day (7X24) 7 days a week, thereby maximizing corporate earnings opportunities.
The above characteristics of CRM are not isolated from each other, but are a whole that supports each other and is highly integrated, and together form the powerful functions of CRM.
3. CRM implementation and data mining technology
3.1. Composition of CRM solution
As enterprise management system software, CRM is usually composed of the following three parts:
"Sales Distributor Management, SDM)"
This module is dominated by marketing and sales business, and manages the sales process in detail. It is an important tool for sales managers to manage and automate sales sales staff. It realizes centralized management and collaborative management of customers during the sales process. Sales managers can analyze sales situation at any time. The specific functions include customer reception management, quotation processing, sales contract management, collection order processing, comprehensive query function, and comprehensive statistical function. The goal is to improve the effectiveness of sales.
"Customer Service Management, CSM"
This module mainly manages the after-sales service of the enterprise, speeds up the response speed of after-sales service, improves customer satisfaction, assesses service personnel, and strengthens supervision of product quality.
The most typical representative of a customer service system is the call center environment, which is usually deployed through a call center environment and realizes self-service based on telephone and web. They enable businesses to meet the unique needs of their customers at faster speeds and higher efficiency. Since in most cases, customer loyalty and profitability from that customer depends on whether the company can provide quality service, customer service and support become critical to many companies.
"Enterprise Decision Information System (EIS)"
With the advent of the e-commerce era and the automation of business operation processes in various industries, a large amount of business data in dozens or hundreds of GB have been generated within the enterprise. This data and the resulting information are the wealth of the enterprise. It truthfully records the essential status of the enterprise's operation. However, facing such a massive amount of data, people are forced to constantly find new tools to explore the operational laws of the enterprise, provide valuable knowledge for business decisions, and enable enterprises to make profits. A powerful tool that can meet this urgent need of enterprises is data mining.
3.2. What is data mining?
To be precise, Data Mining, also known as Knowledge Discovery in Database (KDD), refers to extracting implicit, unknown, non-trivial and potentially valuable information or models from large databases or data warehouses. It is a new field with great application value in database research, integrating theories and technologies in multiple fields such as databases, artificial intelligence, machine learning, and statistics.
The data collected from CRM software is the best way to help companies understand customers. The so-called "one-to-one" sales also focus on understanding customers' needs in order to contribute to their preferences to facilitate transactions. Data is dead, but if some mathematical or statistical models can be used to discover the relationships and rules in the data and predict future development trends based on existing data, it can become a reference for managers to make decisions.
Data mining tools can predict future trends and behaviors, which can support people's decision-making well. For example, after analyzing the entire company's database system, data mining tools can answer questions such as "Which customer is most likely to respond to our company's email promotions, why?" Some data mining tools can also solve traditional problems that consume a lot of manual time, because they can quickly browse the entire database and find some extremely useful information that experts do not easily detect. Therefore, it can be said that the success of CRM lies in successful data warehouses, data mining and knowledge discovery.
3.3. Application of data mining in CRM
More typical data mining methods include correlation analysis, sequence pattern analysis, classification analysis, cluster analysis, etc. They can be applied to various areas and stages of customer-centric enterprise decision analysis and management.
① Correlation analysis
Association analysis, that is, data mining is used using association rules. The purpose of correlation analysis is to mine the interrelationships hidden between data. It can discover knowledge in the database such as "90% of customers purchase product A while purchasing product B in a purchase activity."
②Sequence pattern analysis
Sequence pattern analysis and association analysis are similar, but the focus is on analyzing the previous and subsequent sequence relationships between the data. It can find knowledge in the database such as "In a certain period of time, a customer purchases product A, then purchases product B, and then purchases product C, that is, the sequence A→B→C appears at a higher frequency". The problem described by sequence pattern analysis is: in a given transaction sequence database, each sequence is a set of transaction sets arranged according to transaction time, and the mining sequence function acts on this transaction sequence database and returns the high-frequency sequences that appear in the database. When performing sequence mode analysis, the user also needs to input the minimum confidence C and the minimum support S.
③Classification analysis
There is a database and a set of categories (tags) with different characteristics, and each record in the database is assigned a category of tags, such a database is called a sample database or training set. Classification analysis is to analyze the data in the sample database, make an accurate description of each category, or establish an analysis model or mine classification rules, and then use this classification rule to classify records in other databases.
④Clustering analysis
Clustering analysis inputs a set of unclassified records, and these records should be divided into several categories without knowing in advance. By analyzing the record data in the database, reasonably dividing the record set according to certain classification rules, and determining the category of each record. The classification rules it adopts are determined by cluster analysis tools. Using different clustering methods, different division results may be available for the same record set.
The ideal starting point for applying data mining technology is to start with a data warehouse, which should store the contract information of all customers and should also have relevant data from corresponding market competitors. Data mining can directly track data and assist users in making business decisions quickly. Users can also constantly discover better behavior patterns when updating data and apply them to future decisions.
4. Current development status and prospects of CRM
4.1. Current development status of CRM
The CRM management concept and its value are valued by more and more companies. Since 1997, the global CRM market has been in explosive and rapid growth. China's CRM started late, but it still showed strong development momentum. Its significant value-enhancing ability has been recognized by the industry and is about to enter a booming period of development and a new tracking boom will be formed.
According to a recent research report, more than two-thirds of the companies surveyed expect to change their customer relationship management model over the next five years, while more than three-quarters of the companies plan to integrate a "customer-facing" information management system and other parts of their organization.
4.2. Prospect
Forecast of the future direction of CRM products: The information systems in the front and backend of CRM products will be further integrated in the future; the functions of the call center will be greatly expanded, truly realizing the integration of telephone, www, email, fax, wireless communication, direct contact, etc., and becoming a contact center; network-based self-service will become an important way for enterprises to provide services to users...
As a converged concept across systems such as knowledge management, business operations and e-commerce, customer relationship management is developing at an unprecedented speed and expanding the user base. In the fierce market competition, CRM is gradually becoming the fundamental and key to the survival of modern enterprises.
References
1.
2. http:/
3. Alex Berson, Stephen Smith Kurt Thearling. Build a data mining application for CRM. Beijing: People's Posts and Telecommunications Press, 2001
4. Oracle China Co., Ltd.CallCenter & CRM
5. Overview of Customer Relationship Management on Microsoft Business. /
6. Bill Schmarzo,David Every Customer Relationship Count