Page 119 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes 3. The concept of marketing inside your own organization relates to …………………….
4. Better motivated and enthusiastic sales and customer service staff is a ……………………
for the internal market.

5. Shareholders can also be termed as …………………….

5.2 Data Mining

Data mining is the process for extracting and presenting new knowledge, previously undetectable,
selected from databases for actionable decisions. It is the process of analyzing detailed data, to
extract and present actionable, implicit, and novel information to solve a business problem.
It is the process of extracting valid, previously unknown, and ultimately comprehensible
information from a large database and using it to make crucial business decisions. It is the
process of selecting, exploring and modelling large amounts of data to uncover previously
unknown patterns for business advantage.
More and more managers are using data mining to help solve their most critical business
problems, for example, to increase market shares to improve internal productivity, or to gain a
competitive edge.
Data mining expectations need to be realistic, and they must be found on a true understanding
of what it is and what it can and cannot do. It is to relate real-world business problems where
data mining can play a key role in relationship solutions. There are applications for the technology
of data warehousing and/or data mining towards solving business problems, like:
(a) Customer profitability
(b) Customer retention
(c) Customer segmentation

(d) Customer propensity
(e) Channel optimization
(f) Targeted marketing

(g) Risk management
(h) Fraud prevention
(i) Market-basket analysis
(j) Demand forecasting
(k) Price optimization

5.2.1 Stages of Learning

Successfully using relationship technologies is as continually evolving leaning process. The
stages that make up the management maturity process are interdependent and inter-related,
and the continuous learning becomes highly valuable, through an early understanding of the
future maturation actions, experiences, and combining the learning of management. It is vital to
know the future; based on historical experiences of the past, which can truly accelerate the
maturity process and position for greatly enhanced opportunities.
As the enterprise realises new opportunity and potential, it gains much greater benefits from
info-structure by providing universal data access or a new and sophisticated management

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