Data Mining Techniques in CRM: Inside Customer Segmentation

by Konstantinos Tsiptsis, Antonios Chorianopoulos

A complete and comprehensive handbook for the application of data mining techniques in marketing and customer relationship management. It combines a technical and a business perspective, bridging the gap between data mining and its use in marketing.
 
It guides readers through all the phases of the data mining process, presenting a solid data mining methodology, data mining best practices and recommendations for the use of the data mining results for effective marketing. It answers the crucial question of 'what data to use' by proposing mining data marts and full lists of KPIs for all major industries.Data mining algorithms are presented in a simple and comprehensive way for the business users along with real-world application examples from all major industries.

The book is mainly addressed to marketers, business analysts and data mining practitioners who are looking for a how-to guide on data mining. It presents the authors' knowledge and experience from the "data mining trenches", revealing the secrets for data mining success.

Genres: Business, Nonfiction

372 pages, Hardcover

First published January 1, 2010

Reviews

[Nis CRM · Rating 3 out of 5]

Nicely written & seriously has more variable about CRM company in India

[Bry Willis · Rating 4 out of 5]

Despite the few editorial errors, this book provides a decent basis for customer segmentation. It is primarily oriented on retail, but there are bits on B2B. The examples are specific to IBM's SPSS Modeler, but the information will still be useful if you are using another tool. Whilst this is about data mining techniques in CRM, it does a good job defining segmentation.

[Vytenis]

Value-propensity to churn = 9 segments (high, medium, low)
BEHAVIORAL SEGMENTATION METHODOLOGY:
1. Business understanding and design of the segmentation process.
2. Data understanding, preparation, and enrichment.
3. Identification of the segments with cluster modeling.
4. Evaluation and profiling of the revealed segments.
5. Deployment of the segmentation solution, design, and delivery of the differentiated strategies.
Percentage deviation from overall mean values.
Market research survey and focus group sessions in which they examined the needs and wants and the factors that have an effect on the level of satisfaction (satisfaction drivers).