Absrtact: Customer relationship Management is not only a kind of management concept, but also a new management mechanism to improve the relationship between enterprises and customers, as well as a kind of management software and technology. Data mining can predict future trends and behaviors, and thus support people's decision-making well. The success of CRM lies in the successful data warehouse and data mining.
Keywords: e-commerce; customer relationship management; Data mining
Summarization of CRM and Data Mining
YAN YAN, HU Hengsheng, CHEN yuexin
(School of Computer, national University of Defense Technology, Changsha410073) "Abstract" CRM isn't only a concept Of management, but also a new mechanism of management, using to improve the relationship between the organization and the Customers, as a software and technology of management. The Data Mining can forecast the trend and Behaviors,thereby nicely support ' s people.
A successful CRM is due to the success of Data Warehousing,data Mining.
"Keywords" e-business; CRM (Customer relationship Management);D ATA Mining
1. The driving of e-commerce and the introduction of customer relationship Management
The rapid development of the Internet has brought the whole world economy into an unprecedented high-speed growth period, with the maturity of network technology, E-commerce concept has gradually become popular, e-commerce is booming, e-commerce tide is rapidly changing the traditional business model around the world. Online shopping, business-to-business, and Business-to-consumer have become the focus of conversation. In the next 20, the expansion of E-commerce will form an exponential upward curve.
E-commerce system provides a new way of communication between merchants and customers, but the impact of electronic commerce is revolutionary, and poses a severe challenge to traditional enterprises: require enterprise managers to look at the future customers, competitors and future technical tools with new thinking. Simply automating existing business processes to automate data processing does not mean that success can be achieved in the "New Economy" era. E-commerce requires the renewal and revolution of the management thinking which is matched with it. This is not easy for a traditional enterprise that has already established a certain scale.
The traditional enterprise management's focus is often in the backstage, the ERP system helps them to realize this kind of internal business process automation, enhances the production efficiency. And for the foreground, often pay attention to not enough, face such as: that product is most popular, the reason is what, how many repeat customers, those clients are the most profitable customers, after-sales service have what problems, most enterprises can only rely on experience to speculate.
Now the competition on the network is only between the mouse point, how to win in the E-commerce competition? CRM system (Customer relationship Management,crm), which can provide customer resources and analysis of relevant data, becomes the focus. As a special management of the Enterprise front desk customer relationship Management provides a collection, analysis and use of a variety of customer information systems, to help enterprises make full use of their customer management resources, but also for enterprises in the electronic commerce era calmly and easily to face customers with scientific means and methods.
A large number of surveys and industry analysts have identified the fact that the establishment and maintenance of customer relationships is the only and most important basis for competitive advantage, a direct result of the networked economy and the transformation of E-commerce into traditional business models.
2, the concept and characteristics of customer relationship management
2.1, what is Customer Relationship management (CRM)?
Although CRM (Customer relationship Management,crm) does not have a very unified definition, as the name implies, the enterprise and its customer communication means, it is implemented in the enterprise marketing, sales, Services and technical support and other customer-related areas.
Customer Relationship Management (CRM) is a management concept, originated from the Western marketing theory, production and development in the United States. Its core idea is that the enterprise's customers (including end customers, distributors and partners) as the most important enterprise resources, through the perfect customer service and in-depth customer analysis to meet customer needs, to ensure the realization of customer lifetime value.
Customer Relationship Management (CRM) is a new management mechanism to improve the relationship between enterprises and customers, it is implemented in the enterprise's marketing, sales, service and technical support and other areas related to customers, requiring enterprises from the "product-centric" model to "customer-centric" mode transfer, that is to say, The focus of enterprise should be shifted from internal operation to customer relationship.
Customer Relationship Management (CRM) is also a management software and technology, it combines best business practices with data mining, data warehousing, one-to-one marketing, sales automation, and other information technologies to provide a business automation solution for the enterprise's sales, customer service, and decision support areas, So that enterprises have an e-commerce based on the face of the forefront of customers, so that the smooth realization from the traditional enterprise model to e-commerce based on the modern enterprise model transformation.
The goal of CRM is to attract and maintain more customers by providing faster and more attentive service, on the other hand, to reduce the cost of the enterprise through overall management of business processes. A well-designed CRM solution can help companies improve their communication with existing customers while expanding their new revenue streams. According to the International CRM Forum Statistics, the successful implementation of CRM in the world can bring 6% market share growth to the corresponding enterprises each year, increase the basic service charge of 9~10%, and exceed twice times the development speed of the enterprises with low service level.
2.2. Why implement CRM solution?
Today, sales, marketing, and customer service/support departments in many organizations work as separate entities. Because of the existence of departmental boundaries, these different business functions are often difficult to focus on the customer in a coordinated manner. What if, for example, a salesperson makes a blind call to a customer and sells a product, and he doesn't know that the customer is annoyed with a few unresolved service issues? But by providing a customer communication and communication platform shared by each business unit, the situation is much different, and the CRM solution will make this kind of problem disappear.
2.3, the characteristics of the CRM
① One-on-one Marketing
"One-to-one marketing" is the enterprise according to the special needs of customers to adjust their business behavior accordingly. "One-to-one marketing" requires enterprises to establish a learning relationship with each client. The so-called study-type relationship refers to the enterprise every time with the customer's interaction has made the enterprise to the customer growth of an understanding, customers continue to put forward demand, and enterprises in accordance with this demand to continuously improve products and services, so that enterprises continue to improve the ability to satisfy the customer.
Amazon Online Bookstore (amazon.com) is the use of the Internet across the world and the use of Advanced CRM system software for "one-to-one marketing." In the face of tens of thousands of customers, Amazon online bookstore with "Amazing Memory" and "high intelligence", thus with customers to establish a broad "one-to-one" learning relationship, which makes the bookstore's customer retention rate of up to 65%.
② highly integrated channels of communication
CRM integrates many channels of communication with customers, such as face-to-face, telephone contact, e-mail, fax or letter, and Web Access, so that the enterprise can use the appropriate channel to communicate with the customer's preference. But no matter through which channel, customer and enterprise communication must be seamless, consistent, and efficient.
③ Unified sharing of information resources
All data for a CRM solution should be centrally stored and managed, the experience of different departments in contact with customers should be immediately shared with other departments, so that current customer information can be used in real time for all employees facing the customer, will not produce customers by phone to ask a scheme, but the customer online when the enterprise is recommended B program. A centralized customer information base also ensures consistency of data between different business units and different application software functional modules.
Data analysis and processing of ④ business intelligence
Faced with the vast array of customer and enterprise marketing, sales and service information, without a highly commercially intelligent data analysis and processing system is unthinkable. CRM combines the best business practices with data mining, data warehousing, one-to-one marketing, sales automation, and other information technologies to continuously search for and expand customer profitability and profitability by fully exploiting the customer's business behavior personality and rules. On the other hand, Intelligent data analysis and processing itself is the enterprise to the customer "learning" an efficient process. With the maturity of CRM software, the future CRM software is not only to help the business process automation, but to help managers make decision analysis tools.
⑤ Support for web-based features
The web has become a key factor in CRM solutions, with its increasingly extensive use of both internal and external communications and transactions. The web is essential not only for e-commerce channels, but also for infrastructure. and users of CRM applications, including customers and employees, can access enterprise applications anytime, anywhere. This access should be achieved through a standard Web browser that is easy to use without the need for much training.
CRM enables enterprises to sell and service directly with customers through the web, and enterprises can take advantage of the e-commerce advantages of the web for self-service, self-service sales, potential customer development, time registration, contract renewal, service requests, and phone feedback. All of this has greatly expanded the traditional marketing, sales and service channels in both time and space, enabling businesses to deliver 7-day, 24-hour (7x24) access to the global market to maximize business-benefit opportunities.
The above characteristics of CRM are not isolated from each other, but a whole of mutual support and high integration, which compose the powerful function of CRM.
3, the implementation of CRM and data mining technology
3.1, the composition of the CRM solution
CRM as Enterprise management system software, usually consists of the following three parts:
"Networked Marketing management System (sales distributor Management, SDM)"
This module takes the market and the sales business as the leading, carries on the detailed management to the sales process, is the sales management personnel carries on the management and the sales salesman Sales automation important tool, realizes the sales process to the customer centralized management and the coordinated management, the sales management personnel may at any time to the sale situation analysis, The specific functions include customer reception management, quotation processing, Sales contract management, return payment single processing, comprehensive query function, comprehensive statistic function. The goal is to improve the effectiveness of sales.
"Customer service management System (Management, CSM)"
This module mainly manages the after-sale service of the enterprise, accelerates the response speed of after-sale service, improves the customer satisfaction, assesses the service personnel, and strengthens the supervision of the product quality.
The most typical representative of customer service systems is the call center environment, which is typically done through a call center environment and is based on phone and web self-service. They enable businesses to meet the unique needs of their customers faster and more efficiently. Customer service and support is critical to many businesses, because in most cases customer loyalty and whether they can profit from the customer depend on whether the enterprise can provide quality service.
"Enterprise decision Information System (Executive information System, EIS)"
With the advent of e-commerce, business operations in all walks of life automation, the enterprise produced a number of dozens of or hundreds of gigabytes of business data. These data and the resulting information are the wealth of the enterprise, it truthfully records the essence of the operation of the enterprise, but the face of such a large number of data, forcing people to constantly find new tools to the operation of the law of enterprises to explore, to provide valuable knowledge of business decision-making, so that enterprises to obtain profits. Data mining is a powerful tool to meet the urgent needs of the enterprise.
3.2. What is Data mining?
Specifically, data Mining (Mining), also known as Knowledge discovery in the database (knowledge Discovery in Database,kdd), refers to the extraction of hidden, unknown, nontrivial, and potentially applied value information or patterns from large databases or data warehouses. , it is a new field of application value in database research, which integrates the theory and technology of database, artificial intelligence, machine learning, statistics and so on.
The data collected from the CRM software is the best to help the enterprise understand the customer, the so-called "a pair of line" Sales is also focused on understanding the needs of customers in order to give a hand to facilitate the transaction. The data is dead, but if you can use mathematical or statistical patterns to find relationships and rules in the data and predict future trends based on existing data, then it can be a decision reference for managers.
Data mining tools are able to predict future trends and behavior, this is a good way to support people's decisions, for example, through the analysis of the company's entire database system, data mining tools can answer such questions as "which customer is most likely to respond to the mail sales of our company," and so on. Some data mining tools can also solve some of the traditional problems that are very time-consuming, because they can quickly browse the entire database and find extremely useful information that some experts are not aware of. So it can be said that the success of CRM lies in the successful data warehouse, data mining and knowledge discovery.
3.3, data mining in the application of CRM
The typical data mining methods include correlation analysis, sequence pattern analysis, classification analysis, clustering analysis and so on. They can be applied to the customer-centric enterprise decision analysis and management of different areas and stages.
① Association Analysis
Association analysis, that is, using association rules for data mining. The purpose of association analysis is to explore the relationship between data, which can be found in the database in the form of "90% of customers in a purchase to buy product A at the same time purchase a product B" knowledge.
② Sequence Pattern Analysis
The sequence pattern analysis and correlation analysis are similar, but the emphasis is on the analysis of the sequence relationship between the data. It can be found in the database as "in a certain period of time, the problem that the customer buys a product A, then buys the product B, then buys the commodity c, namely the frequency that the sequence a→b→c appears is high" the question that the sequence pattern analysis describes is: in a given transaction sequence database, each sequence is a set of transactions arranged according to the transaction time, The mining sequence function acts on this transaction sequence database and returns the high-frequency sequence appearing in the database. In the case of sequential pattern analysis, the user is also required to input the minimum confidence level C and the minimum support degree s.
Classification and analysis of ③
There is a database and a set of categories (tags) with different characteristics, each of which is given a category of tokens, such as a sample database or training set. Classification analysis is to classify the records in other databases by analyzing the data in the sample database, making an accurate description for each category or establishing an analysis model or mining the classification rules.
④ Cluster analysis
Cluster analysis input is a group of unclassified records, and these records should be divided into several categories in advance also do not know, through the analysis of data in the database, according to a certain classification rules, a reasonable division of records collection, to determine the category of each record. The classification rules are determined by the clustering analysis tool. Using different clustering methods, there may be different partitioning results for the same set of records.
Application Data mining technology, the ideal starting point is to start from a data warehouse, this data warehouse should keep all the customer's contract information, and should have the corresponding market competitor's relevant data. Data mining can directly track data and help users make rapid business decisions, and users can continue to discover better behavior patterns when updating data and apply them to future decisions.
4, the development of CRM and its prospect
4.1, the development of CRM
The CRM management concept and its value are valued by more and more enterprises, since 1997, the global CRM market has been in the explosive rapid growth. Domestic CRM started late, but still showed a strong momentum of development, its remarkable value to enhance the ability has been recognized by the industry, is about to enter a vigorous period of development and will form a new tracking upsurge.
More than 2/3 of the surveyed companies expect to change their customer relationship management patterns over the next five years, according to a recent study, while more than 3/4 of companies plan to integrate "customer facing" information management systems and other parts of their organizations.
4.2. Prospect
The future trend of CRM Products: Future CRM product foreground and backstage information system will be further merged; Call center function will be greatly expanded to truly achieve the telephone, www, Email, fax, wireless communication, direct contact and other integration, become a contact center , Web-based self-service will become an important way for enterprises to provide services to users ...
As a trans-knowledge management, business operation and E-commerce systems integration concept, customer relationship management is developing at an unprecedented speed, and expand the user groups, in the fierce market competition, CRM is gradually becoming a modern enterprise survival and the key to success.
References
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