The Application Research Of Data Mining Technology On Telecom Enterprise Customer Relationship Management

With the exploitation of the telecom market gradual, the competition in the telecom market is increasingly fierce. The telecommunication operators' business model is moving from "technology-driven" to "market-driven" and "customer-driven". This requires operators to adopt a "customer-centric" strategy and serve customers according to actual personalized demands. Therefore Customer Relationship Management (CRM) implementation is imperative. Telecom enterprises have a large number of customers, and the information about these customers is abundance. These advantages have laid the foundation for the telecom CRM system.In the process of CRM, the telecom enterprise faces a major problem which is how to transform the large scale of customer data and the transaction data to useful information. In the last more than ten years, the data mining (DM) technology developed very rapidly. And it can provide a completely data mining method. DM can help enterprise make better use of data and find the hidden models, and understand it according to the trade knowledge. And then it provides support for the enterprise marketing strategy. Therefore the DM technology has become one of the most important technologies in the CRM system.This paper describes the forming and developing process of the CRM theory. It analyses and compares the definition of the authoritative institutes and consulting firms about the CRM, and sets forth the viewpoint of this article about the connotation of CRM. It expounds the frame work of the CRM system and the relationship of DM.This paper present the background of DM and the evolving process of DM. It introduces the definitions and viewpoints of experts and scholars in this domain, and expounds that we should cognizant of the connotation of DM from two aspects—technique aspect and business appliance aspect. It appraises the study of the DM theory, and presents the function of DM and the commonly used arithmetics.In the part of case study, this paper studies CRM customer segmentation in the telecom enterprise on the base of DM. According to the operation demand and the management condition of the telecom enterprise, it chooses the suitable DM tools and method. It takes advantage of the partition cluster arithmetic in the DM cluster method, establishes the customers segmentation model and details the process of pretreating, modeling and result. It provides quite technique support for the operator's management and decision-making.