4 Instructive Hints of Effective Data Mining in CRM

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4 Instructive Hints of Effective Data Mining in CRM

Evolving technology continues its integration in the business world. Therefore, companies have to deal with the enormous amount of data and analyze it for revealing the useful information for planning and forecasting. As long as a customer became a central point of marketing and sales performance, CRM system turned from a concept into the strategy that facilitates the manual workload and cumbersome processes. Furthermore, these solutions allow incorporating techniques of data mining in CRM for extracting valuable information from the growing piles of records.

Revealing the Nature of Data Mining

Data mining should be considered as an approach that includes some various techniques for discovering the patterns and connections between different record types. Apart from deriving trends of collected data, this process reveals the authentic, valid information of customer behavior, needs and relations that can be used as a powerful leverage in decision-making and forecasting activities. In other words, data mining in CRM improves prospects retentions, targeted campaigns, cross-selling and upselling processes along with growing customer value.

Data Mining in CRM: Discover the Proven Techniques

Due to the predictive and modeling techniques, data mining optimizes the customer-facing processes and enhances the daily customer interaction with each of organization departments. The number of methods for effective leveraging of gathered data is growing. So, if you start with data mining the following techniques will come in handy:


Roughly speaking, it is the process of specifying the similar groups of objects and further dividing them into the classes. You should set definite criteria for algorithms that will measure the shared and varied characteristics of customers. This technique allows dealing with the dimensional, noisy and missing records throughout the database. Besides, the results of this analysis aid the forecasting and modeling processes. [Tweet " Clustering allows to deal with the dimensional, noisy and missing records throughout the database"]


This approach differs from the clustering by dividing customers into the predetermined groups:

  • demographic (age, gender)
  • attitudinal (interest, satisfaction/dissatisfaction with the service)
  • behavioral (habits, time spent on the website, some viewed pages, etc.)

This data mining technique enables you with a deep insight into your customer database, improves your ROI with targeted communications, as well as raises the prospect retention. Besides, knowing your customers advances the service performance and reduces client dissatisfaction rates.

Predictive Analytics

The idea behind this technique is to provide organizations with forward-looking predictions based on the analysis of customer behavior and data patterns. Predictive analytics searches your database for clues and delivers you the instructions for the upcoming steps you should take. In general, these data mining techniques supply the leverages for business strategy development and advancing your performance with CRM system.

4 Steps of Successful Data Mining

CRM solutions thrive to deliver a single overview of a customer and each transaction, as well as aim to transform the service according to specific client needs and requirements. So, you can benefit from data mining in CRM using the following practical steps. [Tweet "CRM solutions thrive to deliver a single overview of a customer and each transaction"]

  1. Planning is the key to success. When you plan your data mining project, you should draw up each stage step-by-step with an awaited result in mind. Define critical business objectives and include the stakeholders into your plan (sales, marketing, support managers and finance department). Set up the budget and human resources for achieving your strategy.
  2. Specify the goals of your data mining project. The next step is to define the goalposts and milestones of your strategy. So, you need to compile a list of business issues and methods that may solve them effectively. After getting the results put them into practice for advancing your performance.
  3. Select the right records for analysis. Within CRM, you have piles of various records. So, it is vital to specify the types of data you need to track and analyse. Having clear issues to solve, you should select records that will address to these questions in full scale.
  4. Boost management collaboration. Data mining improves the automation feature of CRM and optimizes your staff performance. It also helps to avoid wasting employee efforts on customer records updating.

[Tweet "you should select records that will address these questions in full scale"]

Arriving at A Conclusion

CRM solution isn’t a guarantee of immediate business success, so data mining is far from being a remedy for a noisy and inaccurate database. These techniques enhance the process of records analysis and decision-making concerning customer acquisition, optimization of sales and marketing performance and support service improvement. So, clear defining of the key business processes and understanding of customer requirements will offer you an outstanding experience in a successful company running.

 P.S. Wondering about fast and direct CRM data transfer? You can derive benefit from an automated solution Trujay. This web-based service may switch your records in a couple of hours without any side interference. Start a free Demo and evaluate this solution in action.

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