The ever increasing challenges of business environment in the recent past has taught the practitioners of data mining and customer relationship management (CRM) much about delivering high‐return and efficient results. Many service sector organizations including banks are now using data mining techniques to analyze the performance of service/customer relationships. The scope of data mining in business is enormous and thus the organizations including banks are applying data mining techniques to gain competitive advantages in their business. They are maintaining customer data in data warehouses and apply data mining software to uncover trends in the customer behaviour and understand their true business value. The organizations need an evaluation model to select the right data mining tools so as to avoid wrong decision. However, from the survey of literature, it is found that there is a gap in research in the design of an evaluation model for data mining software. In view of the importance of the subject and the existing gaps in reseach, this paper proposes a model for evaluating the data mining software with special reference to one of the leading banks in India, which have successfully implemented the data mining for CRM systems. The thus proposed model would provide a framework to evluate and to select the right data mining software which can be used by the service industry in general and the banking industry in particular.
Journal of Advances in Management Research – Emerald Publishing
Published: Jun 1, 2007
Keywords: Data mining; Customer relationship management; CRM; Service sector; Gender