Managing Large Data

Introduction

Large data on customers, that now is available for businesses due to the new technological tools, including the Internet and the World Wide Web, becomes a key factor for competitive advantage. The increased volume of information has created the dual situation for companies: on the one hand, it plays a big role in organizational decision-making, on the other hand, it intensifies the competition and, as consequence, the pressure on company’s managers. To solve this problem companies need to manage customers in a long-term relationship. In other words, they need to use customer relationship management, which requires that organizations tailor their products and services and interact with consumers based on actual customer preferences.

The first section of this paper covers definition and components of customer relationship management.

The second paragraph is devoted to the data mining, one of the business tools that support decision-making and improvements in CRM.

In the third section are shown the keys to using data mining to succeed in CRM.

I. Customer Relationship Management

With today’s move from mass marketing to customer relationship marketing specific strategies for each individual customer are required. Each customer wants to be served according her individual and unique needs. So, knowledge about individual customers is critical, and that’s why most organizations have built up massive data bases about customers and their purchase transactions.

Companies usually have a variety of customers and they learned to deal with them.

However CRM enables companies to identify more interesting and useful customers and to systematize the relationship to them; with help of interfaces like service and sales staff, website etc.

CRM is a method to satisfy the customers and the goal is to bind them to the company to increase customer value. CRM brings today the same benefits for (potential) customers as already the "General Store" to the few...