Application Of The Technology Of Data Mining In Customer Relationship Management

Being a systematic engineering,CRM is the integration of technology and management. Being the latest development of enterprise informationalization, CRM completes the changes from.product- oriented to customer-oriented, CRM firstly takes customer as the resources of enterprise. At the present, CRM has become one of the most effective measures for promoting the customer satisfaction, increasing the customer reservation and promoting the competence of corporations.The data relevant to customer's behavior is the foundation of CRM. There is a great deal of important information concealed under the mass of data relevant to customers in the information system and staff of corporation. But at the present time it can not be found out speedily and availably because of the limitation of the technology and concepts.Data Mining can help to 'find out some potential and valuable information and knowledge from daily experiences in favor of decision-making. Data Mining has a broad commercial potential, thus becoming a valuable new field concerning knowledge finding as well as knowledgemanagementWe focus on CRM and the application of the technology of Data Mining to CRM. For instance, using the technology of Data Mining to manage all the stages in a customer's life,including getting new customers, making more profits from your present customers and keeping your contact with important customers. We designed an original testing system based on the postal commercial mail names and addresses. In this system the technology of Data Mining is used for analyzing .processing and predicting the existing data, providing assistance for decision-making. This system proves the correctness of the optimization policy and makes a useful attempt in using the technology of Data Mining in the field of post.The main task of my paper is as follows:l)Analyzing the optimization policy of CRM based on the technology of Data Mining. The main feature of this policy is to introduce the ideas of data warehouse and data mining to the measures of CRM . By using data mining we can find out some potential data model from a great deal of data and make predictive analysis,supplying customers with aimed services.2) Discussing the application of data warehouse technology in CRM according to the characteristics of CRM. Data warehouse mainly provides support for decision-making. Compared with conventional database, it is characterized by subject-oriented, analysis-oriented, great data, high integration and perfect timeliness ,being the most powerful way of integrating the enterprise information. The good combination of data warehouse with data mining technology can effectively perform CRM in enterprise operation. The CRM based on the technology of data mining analyzes the relationship of all kinds of data to measure customer's demands, faithfulness, satisfaction, ability to make profits, potential value, credits and risks, providing correct support for the enterprise managements and thus raising its ability to compete and ability to make profits.3)Design an original testing system based on postal commercial mail names and addresses in order to test the theory and methods mentioned in this paper. Its performance proves the correctness and practicability of the combination of the technology of data mining with CRM, making a good attempt for the practicability of the technology of dada mining and providing an effective way for the realization of CRM theory.Our researches show that CRM theory based on the technology of data mining has broad prospects in the future society. Since some relating researches are on the first step, there is a lot of further work to be done more carefully in the future.