Power CRM through Data Mining
2) Predicting or Forecasting
In predictive modeling patterns discovered from the database are used to predict the future. Predictive modeling thus allows the user to submit records with some unknown field values, and the system will guess the unknown values based on previous patterns discovered from the database. While Unearthing finds patterns in data, predictive modeling applies the patterns to guess values for new data items.
Regression:
Regression is the operation of learning a function that predicts the value of a real valued dependant variable based on values of other independent variables. Regression finds application in a CRM environment where prediction needs to be made about the behavior involving real valued variables.
Suppose if the supermarket keeps a count of its no of customers who enter the super market on weekdays and holidays (Saturday and Sundays). And if the super market wants to forecast the quantity of products and the amount in price to be sold for the forth-coming weekends, it can be done through Regression analysis. The whole situation can be modeled through regression and this model can be used to predict the future sales in price and volume.
3) Forensic Analysis
Forensic analysis is the process of applying the extracted patterns to find anomalous or unusual data elements. To discover the unusual, we first find what is the usual, and then we detect those items that deviate from the usual within a given threshold. Unearthing helps us find "usual knowledge," but forensic analysis looks for unusual and specific
cases.
Deviation Detection
Deviation detection focuses on discovering the most significant changes in the data from previously measured, expected or normative values. Most CRM solutions have a DD task running in parallel on a regular basis. Suppose in the super market it’s found that the sales on a particular Sunday is much less than what it was predicted before. The deviation on further analysis would point to the increase in price of a high demand commodity. Deviations most of time result due to the random occurrence but at sometime it might also be changes that occur in fundamentals.
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