IRMA-International.org: Creator of Knowledge
Information Resources Management Association
Advancing the Concepts & Practices of Information Resources Management in Modern Organizations

Customer Relationship Management and Knowledge Discovery in Database

Customer Relationship Management and Knowledge Discovery in Database
View Sample PDF
Author(s): Jounghae Bang (Kookmin University, Korea), Nikhilesh Dholakiam (University of Rhode Island, USA), Lutz Hamel (University of Rhode Island, USA) and Seung-Kyoon Shin (University of Rhode Island, USA)
Copyright: 2009
Pages: 6
Source title: Encyclopedia of Information Science and Technology, Second Edition
Source Author(s)/Editor(s): Mehdi Khosrow-Pour, D.B.A. (Information Resources Management Association, USA)
DOI: 10.4018/978-1-60566-026-4.ch144

Purchase

View Customer Relationship Management and Knowledge Discovery in Database on the publisher's website for pricing and purchasing information.

Abstract

Customer relationships are increasingly central to business success (Kotler, 1997; Reichheld & Sasser, 1990). Acquiring new customers is five to seven times costlier than retaining existing customers (Kotler, 1997). Simply by reducing customer defections by 5%, a company can improve profits by 25% to 85% (Reichheld & Sasser, 1990). Relationship marketing—getting to know customers intimately by understanding their preferences—has emerged as a key business strategy for customer retention (Dyche, 2002). Internet and related technologies offer amazing possibilities for creating and sustaining ideal customer relationships (Goodhue, Wixom, & Watson, 2002; Ives, 1990; Moorman, Zaltman, & Deshpande, 1992). Internet is not only an important and convenient new channel for promotion, transactions, and business process coordination; it is also a source of customer data (Shaw, Subramaniam, Tan, & Welge, 2001). Huge customer data warehouses are being created using advanced database technologies (Fayyad, Piatetsky- Shapiro, & Smyth, 1996). Customer data warehouses by themselves offer no competitive advantages: insightful customer knowledge must be extracted from such data (Kim, Kim, & Lee, 2002). Valuable marketing insights about customer characteristics and their purchase patterns, however, are often hidden and untapped (Shaw et al., 2001). Data mining and knowledge discovery in databases (KDD) facilitate extraction of valuable knowledge from rapidly growing volumes of data (Mackinnon, 1999; Fayyad et al., 1996). This article provides a brief review of customer relationship issues. The article focuses on: (1) customer relationship management (CRM) technologies, (2) KDD techniques, and (3) Key CRM-KDD linkages in terms of relationship marketing. The article concludes with the observations about the state-of-the-art and future directions.

Related Content

Christine Kosmopoulos. © 2022. 22 pages.
Melkamu Beyene, Solomon Mekonnen Tekle, Daniel Gelaw Alemneh. © 2022. 21 pages.
Rajkumari Sofia Devi, Ch. Ibohal Singh. © 2022. 21 pages.
Ida Fajar Priyanto. © 2022. 16 pages.
Murtala Ismail Adakawa. © 2022. 27 pages.
Shimelis Getu Assefa. © 2022. 17 pages.
Angela Y. Ford, Daniel Gelaw Alemneh. © 2022. 22 pages.
Body Bottom