Data Mining Technology And Application Research On CRM System Of Mobile Telecommunication Industry

In today's 3G environment, telephone communication enterprises are facing increasingly fierce competition, data explosion derived from its Management Information System (MIS) and the lack of valid and accurate information for its decision making process. The common dilemma faced by all operators in this industry is the retaining of high-value customers. This has become the hot spots where fierce marketing campaigns are targeted and how their successes are defined. Consequently, CRM has become an effective and sustainable way to enhance the core competencies of enterprises in the market. Data Mining (DM) Technology is an essential and effective tool for a successful CRM. It is undeniable; DM supports an effective and efficient decision-making process in this data-driven industry.The paper also combine research on established DM Theoretical Frameworks and the various arguments on the functions of the Management Analysis System and application status of the Cube Analysis Technology to solve china mobile business questions. After acquiring an in-depth understanding of the structure and function of an analytical CRM System, this paper puts forward the steps on how to use DM Technology in an analytical CRM System. This paper adopted the Data Mining Virtuous Cycle Model to solve CRM business problem. In its analytics, this paper used 16,321 records data, from the period of October 2008 to December 2008 from Ning De China Mobile Data Base Files. And 11,425 Customers Records which comprised 70% of the total records was used as a Training Set.As proposed by the Data Mining Process Model, the paper set up an Interactive Prediction Model on the loss of customers. Consequently, it resulted in a total of seven Decision Tree Rules on the loss of customer. In order to verify the model's validation, the paper used the Misjudge Matrix to verify the model's validation.In order to evaluate the model's validation this paper used 4,896 Mobile Customers Records, which represents 30 % of the total records. The paper's finding was the model's accuracy was 87.73%. Thus, the paper concluded that the validity of the model is feasible.Finally, this paper makes recommendations on how to retain those customers who have intention of, are prone to and/or vulnerable to changing or hopping networks and enhancing the value of customers.Such recommendations are based on the information derived from the Tree Rules, Analysis, Compiling and Summation of the Characteristics of the loss of clients, identifying the patterns displayed by the characteristics of the lost customersThis paper is divided into Five Chapters:Chapter one illustrates the background, the significance and technical routes of the research topic, the theoretical development and empirical research at home and abroad on DM in CRM and the application of Data Mining Technology in the mobile communications industry in specific, the CRM System.Chapter Two focuses on the status of the theoretical aspects of China Mobile CRM, analysis of the operational benefits derived from CRM in the China Mobile, the role of Analytical CRM and its conclusions.Chapter Three analyzes the Analytical CRM system structure and its functions and the status of the operational analytical CRM System in the enterprise.Chapter Four analyzes the application of Data Mining Technology in China Mobile which is a-CRM business, and illustrates primarily on the task of Data Mining in the resolution of its major business issues. Chapter Four also dwelled in-depth on the Data Mining Virtuous Cycle Model .Chapter Five focuses on using Data Mining Virtuous Cycle Model to solve the problem of the loss of commercial mobile customers in China Mobile.