Data Mining

Data Mining

1. Business process for exploring large amouts of data to discover meaningful patterns of full.

2. Focus on customer: CRM

   • How to create a relationship?
     • Notice what they do
     • Remember (history)
     • Learn
     • Act

3. Why?

   • Data is produced, warehoused.
     • Information is VALUABLE
       • Information broker
   • Interest
     • Service business
   • Power is affordable, software available
     • New techniques, improving existing

4. Skills

   • Numbers
   • Statistics
   • Familiarity w/ data mining techiniques
     • When
     • How
   • Attitude: open to new ideas

5. Virtuous cycle

   • Identify b. oportunities
     • Plan: new product intro
     • Direct mktg. campaigns
     • Understand customer attrition
     • Evauating results
     • Allocating mktg. budgets
     • Measurements
       • What?
       • Where?
       • How?
       • Profitable?
   • Mining data (transform)
     • Resources to identify and investigate appropriate data feeds
   • Acting on the info.
     • Reduces level of worry
       • Incorporating results
       • Sending msg to customers
       • Prioritizeing service
       • Adjusting inventory
   • Measuring results
     • Financial measures
     • Modeling efforts
     • Marketing test