Data Mining Techniques in Monitoring Customers’ Sector
Получение информации о секторе клиентов является для предприятия важным фактором повышения конкурентоспособности. Эффективными средствами при обработке и использовании информации в процессе принятия решений являются методики получения данных. Описаны широкие возможности технологии Data Mining Techni...
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Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України
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nasplib_isofts_kiev_ua-123456789-1017882025-02-09T21:31:17Z Data Mining Techniques in Monitoring Customers’ Sector Системы управления информацией в мониторинге покупательского процесс Jelonek, D. Получение информации о секторе клиентов является для предприятия важным фактором повышения конкурентоспособности. Эффективными средствами при обработке и использовании информации в процессе принятия решений являются методики получения данных. Описаны широкие возможности технологии Data Mining Techniques на основе информационных ресурсов системы Client relation management. Отримання інформації про сектор клієнтів для підприємства є важливим фактором під вищення конкурентоспроможності. Ефективними засобами при обробці і використанні інформації у процесі прийняття рішень є методики отримання даних. Описано широкі можливості технології Data Mining Techniques на основі інформаційних ресурсів системи Client relation management. An area where enterprises are increasingly looking for the opportunity to gain competitive prevalence is that of acquiring knowledge about enterprise’s environment, particularly on the customer’s sector. An effective tool in processing and using the knowledge in decision processes is Data Mining Techniques. Wide possibilities of Data Mining Technique based on information resources of Client relation management system are described. 2007 Article Data Mining Techniques in Monitoring Customers’ Sector / D. Jelonek // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 83-90. — Бібліогр.: 11 назв. — англ. 0204-3572 https://nasplib.isofts.kiev.ua/handle/123456789/101788 en Электронное моделирование application/pdf Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України |
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Получение информации о секторе клиентов является для предприятия важным фактором повышения конкурентоспособности. Эффективными средствами при обработке и использовании информации в процессе принятия решений являются методики получения данных. Описаны широкие возможности технологии Data Mining Techniques на основе информационных ресурсов системы Client relation management. |
| format |
Article |
| author |
Jelonek, D. |
| spellingShingle |
Jelonek, D. Data Mining Techniques in Monitoring Customers’ Sector Электронное моделирование |
| author_facet |
Jelonek, D. |
| author_sort |
Jelonek, D. |
| title |
Data Mining Techniques in Monitoring Customers’ Sector |
| title_short |
Data Mining Techniques in Monitoring Customers’ Sector |
| title_full |
Data Mining Techniques in Monitoring Customers’ Sector |
| title_fullStr |
Data Mining Techniques in Monitoring Customers’ Sector |
| title_full_unstemmed |
Data Mining Techniques in Monitoring Customers’ Sector |
| title_sort |
data mining techniques in monitoring customers’ sector |
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Інститут проблем моделювання в енергетиці ім. Г.Є. Пухова НАН України |
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2007 |
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https://nasplib.isofts.kiev.ua/handle/123456789/101788 |
| citation_txt |
Data Mining Techniques in Monitoring Customers’ Sector / D. Jelonek // Электронное моделирование. — 2007. — Т. 29, № 4. — С. 83-90. — Бібліогр.: 11 назв. — англ. |
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Электронное моделирование |
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| fulltext |
D. Jelonek, PhD
Management Department,
Czestochowa Technical University
(Al. Armii Krajowej 19b, 42-200 Czestochowa,
Poland, E-mail: jelonek@zim.pcz.czest.pl)
Data Mining Techniques
in Monitoring Customers’ Sector
An area where enterprises are increasingly looking for the opportunity to gain competitive preva-
lence is that of acquiring knowledge about enterprise’s environment, particularly on the cus-
tomer’s sector. An effective tool in processing and using the knowledge in decision processes is
Data Mining Techniques. Wide possibilities of Data Mining Technique based on information re-
sources of Client relation management system are described.
Ïîëó÷åíèå èíôîðìàöèè î ñåêòîðå êëèåíòîâ ÿâëÿåòñÿ äëÿ ïðåäïðèÿòèÿ âàæíûì ôàêòîðîì
ïîâûøåíèÿ êîíêóðåíòîñïîñîáíîñòè. Ýôôåêòèâíûìè ñðåäñòâàìè ïðè îáðàáîòêå è èñïîëü-
çîâàíèè èíôîðìàöèè â ïðîöåññå ïðèíÿòèÿ ðåøåíèé ÿâëÿþòñÿ ìåòîäèêè ïîëó÷åíèÿ äàí-
íûõ. Îïèñàíû øèðîêèå âîçìîæíîñòè òåõíîëîãèè Data Mining Techniques íà îñíîâå
èíôîðìàöèîííûõ ðåñóðñîâ ñèñòåìû Client relation management.
K e y w o r d s: data mining, customer’s sector, CRM, monitoring.
Scanning environment process. Today’s turbulent business environment char-
acterised by uncertainty and inability to predict the future is extremely challeng-
ing, and thus requires the development of new competences. Companies that are
willing to survive in competition must react to the changes quickly. These
changes are numerous and challenges to re-engineer or adapt with continuous
improvement are numerous, too.
Business environment is the division to macroenvironment and competitive
environment [1]. This division makes easier performing observations, research
and environment analysis. Macroenvironment includes following segments:
economic, political, social, technological, demographic, legislative and interna-
tional. Competitive environments consist of all economic entities that have co-
operative or competitive connections with the company. The distinction be-
tween macroenvironment and competitive environment has generally method-
ological nature and require taking into account its specific elements.
In competitive environment, opposing to macroenvironment the effects of
environment influence on the business are more remarkable and can became no-
ticeable in significantly shorter time. From the macroenvironment point of view
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 83
some changes can be of low importance but from the point of view of objects
that the changes apply to the information are of great importance. Therefore the
enterprises should ensure their access to accurate, high quality information
about the environment, use modern and efficient analytical tools that allow fast
and synthetic diagnose its functioning and determining its position in compari-
son with competitors.
A verified research method in this area is environment scanning. Scanning
provides constant control over particular environment indexes according to as-
sumed premises. It also allows taking full advantage of tools supplying informa-
tion about appearing differences from the assumptions.
Environmental scanning is aimed at creating a reasonable appreciation and
vision of the context for business operation, and to alert managers to the possible
shift or invalidation of old appreciation. Scanning is both purposeful search and
undirected viewing. A complete scanning process is an interactive process of
search and noting (data collection), meaning developing and impact analysis (in-
terpretation), as ell as learning (adaptive action taken) [2].
Enterprise’s environment monitoring with the use of Client relation
management (CRM) system. Numerous interpretations of CRM can be found
in relevant literature. The CRM is understood as a method of managing the most
important clients, as an information system or as a business philosophy. The ba-
sic assumption underlying the CRM philosophy is the individual handling of
each client and maintaining constant contact with him.
Scott defines CRM as a set of business processes and overall policies de-
signed to capture, retain and provide service to customers [3].
Shahnam defines CRM as the first and foremost business strategy for realiz-
ing higher profit and enhanced competitive advantage, which comprises three
fundamental aspects: operational CRM, analytical CRM and collaborative CRM
[4]. It was mentioned that CRM application architecture must combine opera-
tional and analytical and collaborative technologies [5, Fig. 1].
Operation systems, such as the ERP, SCM systems, are responsible for the
everyday maintenance of business processes. These systems are independent of
each other and constitute a basic source of data for the remaining parts of the ar-
chitecture.
The most important element in the analytical module is the Data Mart, or an
integrated, time-invariable store of thematic data, encased in special analytical
systems that enable the retrieving of knowledge from the stored data and discov-
ering new relationships using the Data Mining Techniques. Data Marts store
common information aggregates that are subsequently used for multi-dimen-
sional analyses.
The interactive CRM (the communication layer) allows direct contact with a
client, offering both traditional and modern communication channels. The CRM
D. Jelonek
84 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
is a system assisting in cooperation with the customer and in information ex-
change among the enterprise’s departments.
CRM systems basically make three things possible:
having an integrated, single view of customers, by using analytical tools;
managing customer relationships in a single way, regardless of the commu-
nication channel: telephone, website, personal visit, and so forth;
improving the effectiveness and efficiency of the processes involved in cus-
tomer relationships.
As a result, the implementation of a CRM system will involve changes in the
organisation and operation of each company, resulting in an improvement in its
performance and competitiveness. The most notable improvements that can be
predicted are the following [6]:
greater customer satisfaction, through offering a better service;
greater business coherence, defining corporate objectives linked to cus-
tomer satisfaction;
managing to increase the number of customers and secure greater loyalty
thanks to the reorganisation and computerisation of business processes sur-
rounding the customer relations life-cycle (sales, marketing, customer care
services);
improving and extending customer relationships, generating new business
opportunities;
Data Mining Techniques in Monitoring Customers’ Sector
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 85
ERP SCM Legacy
system
Marketing
automation
Service
automation
Sales
automation
Mobile sales Field service
Data
Werehouse
Customer
Activity
Data Mart
Customer
Data Mart
Product
Data Mart
Marketing
Automation
Voice
(IVR, ACD)
Conferencing
Web Conf.
E-mail Web
Storefront
Direct
Interaction
Operational CRM
Analitical
CRM
Collaborative CRM
OLAP Data
Mining
Back
Office
Front
Office
Mobile
Office
Customer
interaction
Fig.1. The architecture of CRM system: ERP is a Enterprise Resource Planning; SCM is a Sup-
ply Chain Management; IVR is a Interactive Voice Response; ACD is a Automatic Call Distri-
bution; OLAP is a On-Line Analytical Processing
knowing how to segment customers, differentiating profitable customers
from those who are not, and establishing appropriate business plans for each
case;
increasing the effectiveness of providing customer service by having com-
plete, homogeneous information;
lower costs;
sales and marketing information about customer requirements, expectations
and perceptions in real time.
Achievement of above effects is possible thanks application of OLAP tools
and most of all the use of Data Mining Techniques, which based onto huge data
collections will be generating the knowledge of enterprise concerning monitored
segment of customers.
The definition and evolution of data mining. Data mining is also defined
as a sophisticated data search capability that uses statistical algorithms to dis-
cover patterns and correlations in data. The term is an analogy to gold or coal
mining; data mining finds and extracts knowledge («data nuggets») buried in
corporate data warehouses, or information that visitors have dropped on a
website, most of which can lead to improvements in the understanding and use
of the data. The data mining approach is complementary to other data analysis
techniques such as statistics, OLAP, spreadsheets, and basic data access. In sim-
ple terms, data mining is another way to find meaning in data [7].
Data mining is also defined as the process of searching and analyzing data in
order to find implicit, but potentially useful, information. It involves selecting,
D. Jelonek
86 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
Stage Business question Enabling technologies Product providers Characteristics
Data col-
lection
1960s
What was my aver-
age total revenue
over the last five
years?
Computers, tapes, disks IBM, CDC Retrospective static
data delivery
Data
access
1980s
What were unit
sales in New Eng-
land last March?
Relational databases
(RDBMS), Structured
query language (SQL),
Open database connec-
tivity (ODBC)
Oracle, Sybase,
Informix, IBM,
Microsoft
Retrospective dy-
namic data delivery
at record level
Data nav-
igation
1990s
What were unit sa-
les in New England
last March? Drill
down to Boston
On-line analytic pro-
cessing (OLAP), multi-
dimensional databases,
data werehouses
Pilot, IRI, Arbor,
Evolutionary tech-
nologies
Retrospective dy-
namic data delivery
at multiple levels
Data min-
ing 2000
What’s likely to
happen in Boston
unit sales next
month? Why?
Advanced algorithms,
multiprocessor compu-
ters, massive databases
Lockheed, IBM,
SGI
Prospective, proac-
tive information de-
livery
Table 1. Evolutionary stages of data mining
exploring and modeling large amounts of data to uncover previously unknown
patterns, and ultimately comprehensible information, from large databases [8].
Data mining techniques are the result of a long research and product devel-
opment process. The origin of data mining lies with the first storage of data on
computers, continues with improvements in data access, until today technology
allows users to navigate through data in real time. In the evolution from business
data to useful information, each step is built on the previous ones. Table 1 [7]
shows the evolutionary stages from the perspective of the user.
In the first stage specific application programs were created for collecting
data and calculations. Data Collection, individual sites collected data used to
make simple calculations.
At the second step company-wide policies for data collection and reporting
of management information were established. Because every business unit con-
formed to specific requirements or formats, businesses could query the informa-
tion system regarding branch sales during any specified time period.
On-line analytic tools provided real-time feedback and information ex-
change with collaborating business units (Data Mining). This capability is useful
when sales representatives or customer service persons need to retrieve cus-
tomer information on-line and respond to questions on a real-time basis.
Data Mining Techniques in Monitoring Customers’ Sector
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 87
DEPENDENCY ANALYSIS
Associations
Sequences
CONCEPT DESCRIPTION
Summarization
Discrimination
Comparison
CLASS IDENTIFICATION
Mathematical taxonomy
Concept clustering
DEVIATION DETECTION
Anomalies
Changes
DATA VISUALIZATION
Piksel oriented
Geometric projection
Graph based
DATA MINING
TASKS
Fig. 2. A taxonomy of data mining tasks
With the application of advanced algorithms, data mining uncovers knowl-
edge in a vast amount of data and points out possible relationships among the
data. Data mining help businesses address questions such as, «What is likely to
happen to Boston unit sales next month, and why?» Each of the four stages were
revolutionary because they allowed new business questions to be answered
accurately and quickly [7].
The scope of data mining methods usage. Selection of appropriate method
of data analysis is dependent on character of a given problem. Data mining tasks
are used to extract patterns from large data sets. The various data mining tasks
can be broadly divided into five categories. Overview of chosen methods is pre-
sented in Fig. 2.
The taxonomy reflects the emerging role of data visualization as a separate
data mining task, even as it is used to support other data mining tasks. Different
data mining tasks are grouped into categories depending on the type of knowl-
edge extracted by the tasks. The identification of patterns in a large data set is the
first step to gaining useful marketing insights and making critical marketing
decisions.
Data mining in monitoring customers’ sector. Segment of customers is a
very changeable area due to its range, structure, qualitative and quantitative
changes. The knowledge about possible changes which may occur in a segment
D. Jelonek
88 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
Type of analysis Purpose
Customer value
analysis
Better understanding of own clients, improving the effectiveness of mar-
keting actions, individualizing and customizing the offer
Customer satisfaction
analysis
Development of services and products in order to enhance the satisfac-
tion of customers, planning of actions aimed at enhancing the customer’s
satisfaction
Customer loyalty anal-
ysis
Undertaking effective actions aimed at retaining clients, developing loy-
alty programmes
Multidimensional
client segmentation
Better understanding of the client, the customization of the offer and the
personalization of the forms of contact. Enhancing the effectiveness of
marketing actions
Basket analysis Effective recommendation of products to clients, better planning of of-
fers, increasing sale efficiency
Predictive classifica-
tion and modelling
Reducing the number of questions that must be posed to the client in or-
der to adequately determine his most important features in the context of
mutual cooperation
Analysis of turning
points in relationships
with the client
Predicting changes in customers’ behaviour, adjusting to those changes,
undertaking proactively any actions that meet the customer’s expected
needs
Table 2. The types and purpose of analyses within the data mining
is very valuable for people who are managers of a company. Data mining may
provide the knowledge which is helpful in monitoring the changes of sector’s
range and its structure as well.
For example, outlays incurred for acquiring a new client are much higher
than the costs of keeping a once won client. It is therefore worth collecting com-
prehensive information of each client, recording his data, examining his behav-
iour and expectations, so as to subsequently take advantage of the CRM system
and its analytical capabilities in the assessment of clients.
Data mining offers comprehensive analyses concerning the relationship
with the customer. The types and purpose of analyses within the Data mining are
given in Table 2 [9, 10].
The available analysis will enable the optimization of the links with the cus-
tomer in the long run. The system identifies the company’s best customer and as-
sists in activities towards the particular care of those customers.
Data mining will help to make an early identification of a client who might
give up the company’s services, while the loyalty actions undertaken in time
may dissuade him from making such a decision.
Summary. Enterprises which want to achieve competitive advantage on the
market must constantly monitor its environment, especially customers’ sector.
However monitoring procedures and tools in a classic view are not sufficient any
more [2, 11]. Certain stages of the process such as: observation and data gather-
ing are still inducted to employees of enterprise, who are in the nearest of moni-
tored area (marketing department, sales department, service). Observers of a
sector care of constant feeding of information resources of CRM system. Infor-
mation technology also allows for other possibilities of customer’s data gather-
ing and for feeding databases (email, IVR, sms…. )
Performance of analytic CRM is based onto gaining, storing, processing and
interpreting data concerning customers. The most important analyses created by
Data Mining are based on data coming from different sources data warehouse,
and they are stored in customer’s data repository. Those data undergo complex
statistical analyses thanks to which the knowledge about customers’ needs, pur-
chase preferences, behaviors is obtained etc. Provided knowledge enable to cor-
rectly interpret signals from environment e.g. predict changes in purchase pref-
erences of customers.
Among many advantages resulting from Data Mining application in cus-
tomers’ sector monitoring it is worth to score under the possibility of customers’
knowledge distribution, estimation of customer’s value in time, survival time
analysis or analysis of customer’s departure to the competitiveness company.
Data Mining Techniques in Monitoring Customers’ Sector
ISSN 0204–3572. Ýëåêòðîí. ìîäåëèðîâàíèå. 2007. Ò. 29. ¹ 4 89
Îòðèìàííÿ ³íôîðìàö³¿ ïðî ñåêòîð ê볺íò³â äëÿ ï³äïðèºìñòâà º âàæëèâèì ôàêòîðîì ï³ä-
âèùåííÿ êîíêóðåíòîñïðîìîæíîñò³. Åôåêòèâíèìè çàñîáàìè ïðè îáðîáö³ ³ âèêîðèñòàíí³
³íôîðìàö³¿ ó ïðîöåñ³ ïðèéíÿòòÿ ð³øåíü º ìåòîäèêè îòðèìàííÿ äàíèõ. Îïèñàíî øèðîê³
ìîæëèâîñò³ òåõíîëî㳿 Data Mining Techniques íà îñíîâ³ ³íôîðìàö³éíèõ ðåñóðñ³â ñèñòåìè
Client relation management.
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D. Jelonek
90 ISSN 0204–3572. Electronic Modeling. 2007. V. 29. ¹ 4
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