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1、CustomerRelationshipManagementAndApplicationsofDataMiningTechniquesInBusiness-to-BusinessIndustryCustomerRelationshipManagement(CRM):TheConceptFirmstodayarebecomingmoreawareofthefundamentalchangesofcustomerrelationshipsandtheneedtoimplementnewsolutionsandstrategiesthataddressthes
2、echanges(Rygielskietel.2002).AndthustheconceptofCRMhasbeenintroduced.DefinitionofCRM:CRMisanenterprise-widebusinessstrategydesignedtooptimizeprofitability,revenueandcustomersatisfactionbyorganizinganenterprisearoundcustomersegments,fosteringcustomer-satisfyingbehavioursandlinking
3、processesfromcustomersthroughsuppliers.(Collins2001)FunctionsofCRM:CRMrequiresthefirmtoknowandunderstandits15/15marketsandcustomers.Thisinvolvesdetailedcustomerintelligenceinordertoselectthemostprofitablecustomersandidentifythosenolongerworthtargeting.CRMalsoentailsdevelopmentoft
4、heoffer:whichproductstoselltowhichcustomersandthroughwhichchannel.Inselling,firmsusecampaignmanagementtoincreasethemarketingdepartment’seffectiveness.Finally,CRMseekstoretainitscustomersthroughservicessuchascallcentresandhelpdesks.(Rygielskietel.2002)Manypractitionersrecognisetha
5、tkeepingcustomersismoreprofitablethanattractingnewcustomers(BitranandMondschein,1997).AccordingtoSrivastavaetel.(2002),toacquireanewcustomercostsfivetoseventimesmorethantoretainanexistingone.Hence,manycompaniesareadoptingCRMasameanstodevelopandmaintainsuccessfulcustomerrelationsh
6、ip(VerhoefandDonkers,2001).Thisgenerallyacceptedviewonthe15/15motiveofadoptingCRMfocusesmoreonmaintainingtherelationshipofexistingcustomers,notonacquiringnewcustomers.However,acquiringnewcustomers,whichcanbeviewedasCustomerRelationshipEstablishment(CRE),shouldformapartofCustomerR
7、elationshipManagement.Myargumentsarea)alltheCRMactivitiesarebasedontheacquisitionofnewcustomers,itisthepremiseoftheCRMactivitiesonwards,andb)tounderstandapotentialcustomer’sneedisasstrategicallyimportantastounderstandacurrentcustomer’sintermsofproductdesignaswellasafter-salesserv
8、ice,andfurthermore,c)thesametheoryandpra
