Power of CRM with Data Mining

Power CRM through Data Mining

Power of CRM with Data Mining
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Such advances in Information technology, networking and software integrations
helped the companies to match the competition. And also huge advancement
in manufacturing process technology has made product quality and costs, no longer
a significant competitive advantages.

This made all the companies and its CRM team to find out more innovative and
effective techniques to attract and retain customers. Over a period of time the
complexity and toughness of these methods increased heavily. The advancement of
Databases helped the companies maintain the information about each and every customer,
their personal likes and dislikes. As time passed, technocrats used the data present
in the database to extract more intelligent information that might directly help
the company in its product development, marketing and sales techniques.

And this is how a concept called Data warehousing emerged. And this Data warehousing
was termed as a consolidated & managed storage of relational data.
This enabled the easy availability of standardized and consolidated data. Slowly this
easy availability of rich data increased the ability to classify, sort and report that
data into patterns. And this is exactly how the powerful concept of data mining emerged.
Data mining can be termed as an application of data sorting and searching technologies
to identify patterns.

Through this process of filtering and analysis, raw data becomes useful information,
and information becomes competitive intelligence.

Data warehousing and data mining together form the engine that drives today’s
CRM applications. These two powerful tools are what that makes effective CRM
possible – and what deliver value from CRM data.

So what does this white paper comes to say?
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As we discussed from the Introduction, CRM as a concept existed from 300 years before, and that is called as ‘Traditional CRM’. Traditional CRM has nothing to do with computers, software or technology. It’s a just a philosophy of ‘how to attract customers and how to retain them’.

As we saw above, years passed by and technology advanced at incredible pace, this advancement in technology, and advancement in Information technology gave a new outlook and a very new meaning to CRM and thus a new concept called e-CRM emerged.

And again as we saw above, companies were constantly innovating and were finding newer ways and means of creating an edge amongst them in gaining the attention of customers, technocrats were busy in extracting intelligence from the customer database they had, extracting very critical intelligence like the personal likes and dislikes of each and every customer. The tools that aided them in doing this were data warehousing and data mining.

Thus at the new age, data mining has the power to convert e-CRM into ‘Power CRM’. And this is what this paper is all about.