Application Of Data Mining In Customer Relationship Management

Customer relationship management has been a hot topic in the field of management recently. Customer Relationship Management (CRM) is a kind of new management systems aiming at improving the relationship between corporations and their customers. It can keep touch with and attract more and more customers through efficient and kind services. Due to the advancement of Internet technology, especially the development of Electronic Commerce, the former enterprises operating mode, product-oriented, couldn't increasingly satisfy individual and diversiform demands. If enterprises aim at creating profit, CRM is just the most useful tool to achieve it, and Data Mining is the best engine of this tool.Data mining technique is an advanced science in recent years .It points out how to find out important knowledge from very large amounts of data and set up predicting model by use of statistics and machine learning technique. Data Mining is a new technique, which aims at discovering potential and valuable pattern so called knowledge from database. The knowledge discovered can be used for decision-making. Because of its wide application background and realistic significance, the technique and application of Data Mining advance rapidly and draw upon the attention of the international academic circle.Data is the foundation of good CRM. There is a great deal of important information concealed under the mass of data relevant to customers in corporation. But at the present time it can't be found out promptly and effectively because of the limitation of tool used by people. Data Mining can set up the model which can forecast the trend of behavior of customers, help people to pick up the useful business information from mass of data and therefore support people's decision well.Focusing at the characters of DM above, this paper studies on the technology of Data Mining in application of CRM, discusses CRM on its actuality, and reviews the domestic and overseas application and the problems confronted with. The program has been funded by the project , the fund of this University to sponsor key graduate subject construction.The paper discusses the method and key problem to apply Data Mining in CRM system, describes the procedure to establish and startup DM in CRM system. In order to explain and prove the viewpoint, the CRM system of international trade e-business has been designed. It adopted B/S structure integrated with the characteristics of international trade e-business. Detailed process and approach to apply DM in CRM system through system design have been introduced, including: DM mission define, data collecting and data preprocess, construction of database, DM arithmetic applications and system interfaces design etc.CRM concept governs the process of system design and DM method used in it. Qualitative induction, clustering analysis, classification analysis, correlative analysis, lots DM algorithm were used in the system, and achieved manifold function including: customer clustering analysis, customer value estimate, customer structure analysis, loyalty analysis, satisfaction analysis, cross-selling, customer lost analysis. The system implements customer prediction based on the data by the technology of Data Mining. And it can solve many problems in international trade corporations. It performs a helpful attempt to make Data Mining in CRM practice and shows a feasible technology way to enhance the availability and real-time capability of CRM.