Here’s the explanation:
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As described above, data mining is an efficient tool help marketing people to analyze consumer’s behaviors, classify data and predict the future trends by pattern analysis. Business would gain more profits if managers make good use of it. In addition, data mining also contributes a lot to CRM, Customer Relationship Management.3 CRM is a new concept in business administration. Companies have changed their interaction modes with customers. Only they understand what their consumers or potential consumers are thinking, can they make more money! Many online shopping companies focus their marketing strategy on the advertisements to increase the market share and create the brand image, but they ignore the faithfulness of customers is the foundation of market share. Although E-commerce builds an easier transaction for the business and the customer, it contrary reduces the interaction between them, so CRM becomes a critical factor to a successful operation: who can predict and understand the customer’s favors and behaviors will be the final winner. There are several main information techniques assisting CRM; their major source is the data, including the products, customers, and any sales related data. These data are increasing rapidly through the daily transactions and they can only be managed effectively by business intelligence system such as data mining or data warehouse.
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