The Application Of Concept Lattice In Customer Relationship Management

Nowadays, information technology is developing at a very fast speed. In an increasingly competitive market, enterprises are facing the unprecedented challenges of market and customers. In this kind of situation, in order to be the winner of the severe competition, enterprises must absorb advanced theory of management in good time, use advanced information technology and data analytical method, get the information of the market,and make scientific analyses and scientific decision on market information.Customer Relationship Management (CRM) is a new conception of management which has developed with the commercial mode of "Customer is god" .It emphasizes to improve the customer's satisfaction and loyalty during each step of producing and selling. In order to make sure of the profit, we should take different selling strategies according to the value of customers, which is to enlarge the valuable number and eliminate the invaluable one. At present, automation of enterprises operational process and increasingly widespread using of database management system allow companies to generate and store information on customers of a large number of historical data. Faced with huge volumes of data,it has become the most important topic in areas of research: how enterpriese identify the potential of information and models, improve analysis and processing capabilities of CRM in customer value judgement, customer segmentation, customer retention, cross-selling and other aspects,help companies accurately grasp the customers demand of current and potential,guide enterprises in production and sales. As an advanced data analysis methods, data mining is an effective tool in deep analysis of customer data.This paper presents concept lattice as a tool of data mining, applied to the analysis of data in CRM. The main contents of are the following:(1)This paper introduce the definition, classification, and other theoretical content of CRM,analyses the present situation of CRM in theory and practice at home and abroad, then indecates the necessity and importance of data mining for CRM,and explains data mining of CRM in detail.(2)The structure of concept lattice plays an important in the application of various algorithms have been developed.The main algorithms are classified as batch construction and incremental construction,and the latter is thought promising.This paper analyzes the process of incrementally updating,makes improvement on Godin algorithm,lists the pseudo code,implements the algorithm,and amalyzes the performances of the program in terms of the data in running.(3)According to the characteristics of the constructed concept lattice,Rules are extracted on concept lattice from the association rules, classification rules and clustering algorithm and tested in the CRM business sales data for the test which confirms the feasibility of concept lattice for CRM data mining.This paper designs a model based on the concept lattice framework of the CRM system and achieve a simple system FCA-CRM by using C# and SQL Server 2000.