MOTIVATION Organizations spend large capital to establish and maintain customer relationship. The

1400 WordsApr 23, 20196 Pages
MOTIVATION Organizations spend large capital to establish and maintain customer relationship. The merging of technology with the management of customer relationship will result in an improved overall process. The technique of data mining will not only solve the issue but also the policies and the strategies so designed could be more effective and competent. Thus the money spent on the customer retention programs/schemes can be saved by being more direct and specific. SCOPE In the present growing economy the market is full of cut throat competition. Acquiring new customers is manifolds more costly than retaining an old one. It is important to target those customers that could return maximum benefit. Thus this study could help in targeting…show more content…
Data mining is a set of automated techniques used for extracting hidden information and discovering useful patterns exist in the data sets. The aim of this research is to study the data set of customer group and extract a set of customers with high churn. The classifier used in this analysis is Decision Tree which works on recursive partitioning. It will in turn determine classification rules to segregate the data in accordance with the rules. These classification rules will predict class label (churn) of sample dataset. After knowing the set of customers with chances of churning the strategies could be designed with special concern on those customers. The strategies developed to retain the set of customers, with churn probability, could be concentrated not only in formulation but also in implementation. LITERATURE REVIEW In the year of 2001 when the use of data mining in marketing was a relatively new concept Shaw ,Subramaniam, Tan and Welge gave an insight about management of large database using data mining techniques. They brought the concept of identifying useful information from the large customer database by identifying hidden patterns. They integrated data mining and marketing knowledge management to help in managing marketing decisions. The integration of data mining with marketing decisions is taken by further researchers in an
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