is a business strategy with outcomes that optimise profitability, revenue and customer satisfaction by organizing around customer segments,

s, fostering customer-satisfying behaviors and implementing customer-centric processes.

is a strategy
used to learn more about customers' needs and behaviors in order to develop stronger relationships with them.

Underpinning Theory
Customers have many points of contact with an organization Retaining customers is far most cost effective than recruiting new ones Some customers are more profitable than others The 80/20 rule For most firms, 80 percent of profit comes from 20 percent of customers Use of Technology

Three phases of CRM

Acquiring New Relationships
acquire new customers by promoting companys product and service leadership.

Enhancing Existing Relationships

enhance the relationship by encouraging excellence in crossselling and up-selling, thereby deepening and broadening the relationship.

Retaining Customer Relationships

Retention focuses on service adaptability delivering not what the market wants but what customers want.

An Example

Data Warehouse - Overview

Star Schema- A Special Database Base design

CRM : Data Warehouse

CRM activities include
data analysis campaign design response analysis of customer data

Therefore data warehouse for CRM should be

customer centric (provide unified view of customer data)

Foundations of Data Mining

Process of using raw data to infer important business relationships. Collection of powerful techniques intended for analyzing large amounts of data. There is no single data mining approach, but rather a set of techniques that can be used stand alone or in combination with each other. A user-centric, interactive process which leverages analysis technologies and computing power

Data Mining Is NOT

Data warehousing Software Agent Online Analytical Processing Data Visualization Presenting data in different ways Blind application of algorithms Brute-force crunching of bulk data

Data Mining Vs OLAP

OLAP - On-line Analytical Processing Provides a very good view of what is happening, but can not predict what will happen in the future or why it is happening

What can be done with data mining ?

Fraud/Non-Compliance Anomaly detection
Isolate the factors that lead to fraud, waste and abuse Target auditing and investigative efforts more effectively

Service Delivery and Customer Retention Build profiles of customers likely to use which service
Recruiting/Attracting customers Maximizing profitability (cross selling, identifying profitable customers

Final Comment
Data Mining can be utilized in any organization that needs to find patterns or relationships in their data.