Better Understand Your Customers

Data mining, customers and the web

Thomas Khabaza
SPSS Advanced Data Mining Group
and 
Alex Nippe
Credit Suisse

 

Introduction to Analytical CRM

Analysing the customer

In the modern business world, organisations are increasingly focused on their customers. Managing the relationship with the customer is an essential element for the success of a business (see for example Curry 1998, 2000). This Customer Relationship Management (CRM) is conceived as having three components:

  • an operational component which enables a distributed organisation to deal with customer in a coherent manner;
  • a strategic component which guides the business in accordance with customers' needs; and
  • an analytical component, which improves decision-making at both operational and strategic levels by providing a better understanding of the customer base.