Data Mining in CRM - Data Mining Techniques in CRM: Inside Customer Segmentation - page 5

Figure 1.1 Data mining and customer lifecycle management.
data-driven behavioral segments. Clustering algorithms can analyze behavioral
data, identify the natural groupings of customers, and suggest a solution founded
on observed data patterns. Provided the data mining models are properly built,
they can uncover groups with distinct profiles and characteristics and lead to rich
segmentation schemes with business meaning and value.
Data mining can also be used for the development of segmentation schemes
based on the current or expected/estimated value of the customers. These segments
are necessary in order to prioritize customer handling and marketing interventions
according to the importance of each customer.
Direct Marketing Campaigns
Marketers use direct marketing campaigns to communicate a message to their
customers through mail, the Internet, e-mail, telemarketing (phone), and other