Data Mining Analysis and Modeling for Marketing Based on Attributes of Customer Relationship

Abstract: With the rapid growing marketing business, Data Mining technology is playing a more and more important role in the demands of analyzing and utilizing the large scale information gathered from customers. To predict the consequent business strategy by using Data Mining, the Customer Relationship Management (CRM) nowadays is required to evaluate the customer performance, discover the trends or patterns in customer behavior, and understand the factual value of their customers to their company. In this paper, we present an effective model to apply Data Mining to the CRM problem of categorizing the customers in marketing to search for potential clients based on their properties by (1) computing Distance in Cluster Analysis and Life in Association Rules according to the Attributes of Customer Relationship (ACR) including Self-Reliance Index, Impact Index and Matrix for customer value, and (2) in the Data Mining modeling theory, constructing the Regression Model in the ACR and implementing the corresponding algorithm to mine the most profitable customer group.