As a continuation of my first article about Successful CRM with data mining, I asked the question how can we use Data mining to get more customers ?
Email Marketing
The email marketing is probably one of the most successful tools today for prospecting new clients over the net. Many specialized professionnal companies offer email marketing services like viral marketing which allow to service to new possible customers selected using many criteria.
Show case
Now the idea is to convert these prospects to customers porbably by offering free trial of products, or some special offer depending of the company marketing plans. I remember reading a showcase in SPSS about the BB&CC’s bank experience which spend a total of $1,000,000 on emailing to make a net profit of $1,250,000 over the next years. Data Mining: Adquiera una ventaja competitiva [spanish]
Of course such compains should be done in small proportion first, after this a data mining is necessary to analyze these results and make a decision tree. This model could now be applied to a larger prospects database. The effect is clear, more responses from users, and so more possible customers and eventually a higher gross profit.
Data mining model
Which model to choose is the big question. There is no perfect model by analysing prospects results, but the idea is to maximize it. Neural networks are excellent solution to modelize the problem, while the common usage is for regressions, in this case we’ll be more interested by classifications.
CRM and Data mining
Since data mining is a source of customers its interesting to have these results available in CRM. The more we know customer, the more we serve him better. unfortunately you’ll find always both solution separated, but the great favor is the possibility to exchange data between both
