Data Mining Essay

What is pixilatedt by the term victimize?The term get hold describes the im confirmd act of an exact or particularised amount of swither on a toughieed sampling, as opposed to a haphazard sampling (Spang, 2010). In other words, if you atomic number 18 able to market via a personate to say, a given number of random guests (e.g. 1000), and we expect that 50 of them would be successful, hence a model that ro intake generate 75 successes would begin a 50 percent lift. twist is possibly the al close to comm scarcely metric used to measure shoot foring model performance in marketing applications the purpose of which, is to identify a subgroup or target from a larger population (Coppock, 2002 and Spang, 2010). The subgroup targeted or target members selected are those who are most likely to respond positively to a marketing offer.As such, the model is doing well if as predicted the retort within the targeted section is much improve than average when compared to the po pulation as a whole. Lift then, is simply the balance of these values target response divided by average response (Coppock, 2002).Lift Charts and Lift Curves are terms a good deal seen in take marketing. To quickly define them here a lift carousal is a popular technique which assigns a probability of responding score when used in an attempt to determine who the likely responders from a population are.The lift curve helps us determine how powerfully we butt end skim the cream by selecting a relatively sm wholly number of cases and getting a relatively large portion of the responders (Keating, 2013).A lift chart or a Gains Chart is a convenient summary of t stunned ensemble the cumulative lift curves whereby all the randomness in these multiple classification matrices are sour into a graph (Keating, 2013 and Coppock, 2002).What is Customer descent Management (CRM)?There is only one boss. The customer. And he can fire everybody in the alliance from the chairperson on m aster, simply by spending his money somewhere else. surface-to-air missile Walton (Founder of Wal-Mart) Customer Relationship Management or CRM is a company-wide argumentation schema which is generally designed with the intent to reduce costs and increase lucrativeness by solidifying customer satisfaction, loyalty and advocacy (CRM Magazine, 2010).While once, it was regarded of as a type of software, today, CRM has evolved into a customer-centric philosophy that must permeate an intact presidency (CRM Magazine, 2010). In other words, it is not a new-fashioned sentiment but as the quote above by Sam Walton suggests an exceedingly important one that can and should be instinctively employed to all businesses to ensure re change forming and new leaf nodeele. We may perhaps think of CRM in its most basic, common and best known form as customer profits or simply, methodology employed to farm happy customers.A true and effective CRM program revolves around three key element s flock, processes and technology (CRM Magazine, 2010). Targets within these elements that should be especially considered are individual applications, a data infrastructure to plump for them, and organizational changes to take full advantage of the skillful up commemorates (Goodhue et. al., 2002).Moreover, the CRM program should be bringing in instruction from all applicable data sources both within, and exposeside the organization when applicable. In doing so, a company is able to gain a holistic view of from each one customer in real time (CRM Magazine, 2010), therefore allowing staff dealing now with customers, for example, in the realms of customer support, deals and marketing the ability to make sealed yet quick decisions on everything from cross- cuckolding and upselling to target marketing strategies and competitive spatial relation tactics (Info Entrepreneurs, 2013 and CRM Magazine, 2010).A working example of how CRM could be achieved may be through and th rough discovering the purchasing habits, opinions, inevitably and preferences of ones customers then indite the individuals and groups researched so marketing can be executed more than effectively, olibanum change magnitude sales. Finally, by combining this information found with thoroughly customer services and satisfaction customer relationships which are the snapper of business success, can be appropriately and effectively fostered, then maintained and ultimately managed for susceptibility and profitability.While there are many technical and technological regions to CRM, opinion about CRM as primarily a strategy to l actualize about the needs and behaviors of customers in an effort to execute, develop and strengthen relationships with them may prove to be more helpful overall and in the long term. Additionally, it should be thought of as a process bringing together information concerning customers, sales, marketing effectiveness, responsiveness and marketing trends (Goodhue et. al., 2002 and Writing, 2013).Finally, for CRM to be rightfully effective, everyone in the organization from the CEO to the frontline staff and those behind the scenes need to get on board, baffling and invested in the companys program (Info Entrepreneurs, 2013 CRM Magazine, 2010 Writing, 2013 and Goodhue et. al., 2002).What are its benefits? Provide examples of emf benefits.To reiterate the above benefiting from CRM is not just a question of buy the right software. You must besides adapt your business to the needs of your customers (Info Entrepreneurs, 2013). Having express that, by and by investing the time and expense in implementing a good CRM solution, there are many potential benefits, some being extremely of import and having a major impact on the establishment in question Development of represent relationship with existing customers due to misgiving and therefore caterressing their specific requirements. Increased sales and revenue through better ti ming gained via anticipating the customers needs based on historic trends. Cross-selling of other products by leveraging the customer relationship. Ability to identify the most profitable clientele. modify profitability through focusing on most profitable clients date dealing with less profitable clients in a more cost effective manner. Better overall marketing of products or services.More effective target marketing communications aimed specifically at customer needs. An improved, more personalized approach which can help win additional business in the future. The development of new and / or improved products and services through better client feedback, complaints, comments and suggestions. Reducing cost of sales and cost of new customer acquisition and generation by concentrating on customer retention, thus improving organization reputation and word-of-mouth recommendations. (Writing, 2013 Info Entrepreneurs, 2013 and Goodhue et. al., 2002).With respect to CRM arrangements, what does it mean if the arranging is climbable?A scalable system according to the origin mental lexicon, is one whose size, performance or number of users can be change magnitude on demand without a penalty in cost or functionality. A secondary definition details that such a system is well designed enough to handle proportionally very elflike to very large usage and service levels almost instantly, and with no significant drop in cost effectiveness, functionality, performance or reliability. It goes on to add that scalable systems may generally utilize technologies such as self-acting load balancing, clustering and parallel processing as a federal agency to achieve the smears listed above (Business Dictionary, 2013).With respect to CRM systems (and even data mining systems), both definitions apply with equal precision and aptness to scalability because scalability deals with not only the increasing size of data sets, but also how to process them within a useful timeframe.We can go so far as to oblige that the issue of scalability in systems such as CRM are similar for performance scaling issues for Data Management in general (Piatetsky-Shapiro and Parker via Massa-Lochridge et. al., 2013). Ultimately, the scalable system is in the business of energy of digest and being able to do so with very large data sets (Olson and Shi, 2005).A system which is scalable is one which can aid in overall performance in the organization. In fact, scaling and performance are often considered together in both data mining and CRM systems (Massa-Lochridge et. al., 2013).To further emphasize and prove these points, we can look towards real life examples such as the Onyx checklist for scalability which sets the criteria as a customer management system deployed across the company that is able to support staff without any degradation in performance.Furthermore, the system must also be able to support thousands of users with sub-second response times. For it to be truly scalabl e, it needs to be a flexible CRM solution preferably one which adheres to an manufacture standard architecture which can leverage existing infrastructure. This, conjugate with efficiency and easiness of upgrading, will help to keep the total cost of self-control low now, and into the future (Onyx, 2013).Compare and contrast affinity berth and cross-selling (minimum d words). Provide real life examples and personal experiences to substantiate this analysis. Affinity localisation is a marketing tactic that is defined exactly as its component words suggest the practice of lay or placing products that endure a natural or inherent attraction or connection with each other, together.For example, a sell store may arrange their shop layout in such a way that there is a deliberate, close posture of complementary products on the shelves (Olson and Shi, 2005). Consider also, this potential real life stance where a retailer may have identified through perhaps, a Market Basket Analys is that customers who tend to buy cold care for also have been observed to purchase tissues. Similarly, the buying of coffee makers may be strongly cor link with the purchase of ground coffee. It therefore makes smack from a marketing and profitability perspective to place both these items in each set, in close proximity to each other.Cross-selling is a related and resulting concept. Where there is knowledge of products that go together, one is able to use this information to create cross-selling opportunities through marketing the complementary product (Olson and Shi, 2005 Microstrategy, 2013 and Tsai, 2010).Apart from positioning products on shelves like a grocery store king do, retail stores for example, can be seen to rely upon publicize to create this connection within the purchasers legal opinion. A buyer of suits for instance, may notice the sale of shirts and ties from posters and advertising stands on shop windows and outside the door, respectively. In terms of technol ogy, we may observe computer stores selling laptops while encouraging customers to purchase accessories or peripherals like casings, screen protectors and external hard drives concurrently.While both strategies have always been applied by the clever retailer, today data line of battle (e.g. generated from cash register data) and automated data mining tools provide them with a yet unmatched ability to even identify the less evaluate and less obvious product affinities and cross-selling possibilities. Sellers are now able to use current technology to look at customers purchase history and target marketing operations specifically to their individual and group needs and wants (Olson and Shi, 2005).A Customer Cross-Cell Analysis can be employed to identify customers who might be interested in purchasing complementary products and services to those which have already been bought previously (MicroStrategy, 2013). Indeed, sales and marketing managers have long relied on the cross-sell ana lysis to create more efficient marketing projects, thereby producing increase revenue with less resources through focused efforts.A customer cross-sell analysis typically begins with using data mining techniques and tools to determine which product pairs (product affinity) are frequently purchased by a significant number of customers. From here, an organization can then identify which customers bought one but not both products or services. By executing this second stage, we can now know who these customers are and hence target them specifically thereby reducing total advertising campaign costs, increasing response rates and finally and most importantly, create increased sales (MicroStrategy, 2013 Olson and Shi, 2005 and Tsai, 2010).One point worth mentioning, is a key but related concept to both affinity positioning and cross-selling, which is upselling (also often referred to as up-selling or up selling). This feigns searching for opportunities to sell an improved, higher grade or generally more expensive latest product to the consumer. sack back to the example of the computer store, a staff member who tries to upsell to a new or returning customer may sing the p spring ups of another, higher-end model of laptop which may have more features the client may think useful, thus hoping to create a more profitable sale.In my own, personal experience in a hospital setting affinity positioning is seen for example, in the maternity ward where New Mother and Baby occupy Training hospital sponsored classes or their adverts are held or displayed in an subject close by, thus encouraging expecting women to come back to the hospital after delivery to take advantage of this value added service.In doing so, the hospital then creates a cross-selling opportunity by ensuring additional services such as pediatrician care for babies or postpartum care for mothers are distinctly advertised via a targeted campaign.Finally, upselling is also seen in this ward via examples suc h as when staff offer mothers increased comfort and privacy with the option of upgrading overlap rooms to private ones.Identify and discuss some potential honourable mishandling when it comes to cross-selling. Some of the more commonly known ethical issues to watch for in cross-selling, as well as in general marketing embroil but are not limited to Intentionally trying to sell sub-par goods or services to the client in a bid to create a sale, when aware of the quality deficiency. Related to the above, is the deliberate misrepresentation of goods or services, in both cross-selling and otherwise.Incessantly contacting existing or potential clients without try for in order to cross-sell products or services. The refusal to respond to, acknowledge or correct customer complaints after a sale has taken place be it cross-selling or initial sales. An unclear privacy policy which may involve personal details being distributed or sold. An unclear after sales policy which may involve the placement of deliberate loopholes for the sellers to have an advantage. Again, this point can be attributed to both regular sales and cross-selling issues.With regards to issues more specific to cross-selling, research has revealed that certain service sectors may be affected by ethical mishandlings and / or concerns more than others. In particular, it is revealed that situations regarding cross selling in hospitals situations to do with plastic operating theater and cross-selling targeted towards the cured, have all been widely discussed in recent years and may be cause for action.With respect to cross-selling in hospitals, an example which can be seen is that ethical issues often arise when medicine, equipment or checkup product reps all too easily ignore or forget that they are supposed to have the hospitals, doctors, medical staffs and patients needs at heart attempting to create sales based on the pharmaceutical companies incentives and profit margins instead.When this happ ensIt ignores the indispensableness of consultative selling, which involves proper questioning techniques. It fails to connect the customer on a value level. In essence, its not selling at all its simply peddling (Francis, 2008).The literature available also suggests that there have been events with respect to aesthetic plastic surgery which again raise the question of ethics mishandling and cross-selling. Concerns here include examples such as cross-selling and pack cosmetic surgery and procedures as attractive package deals whether they be requisite or not (Fatah, 2011), or the rise of incidences such as patients having undergone bureau found removals or replacements being bullied or pressured into buying additional surgery such as nipple lifts (mastopexy). In addition, these cross-selling strategies may be coupled with other marketing tactics such as time-limited offers from their clinics, resulting in misgiving and customers feeling the need to respond instead of taking t ime out to heal after surgery (BAAPS, 2012).Finally, in terms of targeting the elderly for cross-selling certain products and services which may be deemed unethical one may deal to consider the unethical and dishonest conduct of promoting and selling expensive annuities to elderly customers, the market targeting done here because the elderly may be seen as easy targets (Litterick, 2005).There have been cases of banks which have been accused employing cross-selling practices such as referring existing, elderly customers who come in for separate bank services, to stockbrokers who in turn sold them variable annuities that are often considered un adequate for older people because they can be expensive and do not pay out quickly (Litterick, 2005). This was often found to be due to the fact that service staff were receiving incentives for doing so.In response to such cases, Banner (2011), maintains thatImproper cross-selling cross-selling of products to earn a fee or a commission that does not truly benefit the clients quality of life on a long-term basis is wrong, unethical and immoral (Banner, 2011).He does go on to ascertain however, that the cross-selling of a product or service which truly is suitable to them meaning to say it can benefit and / or protect the client appropriately, is well worth considering (Banner, 2011).As a final note on the ethics of cross-selling, to avoid ethical dilemmas and mishandling, it is prudent to keep in mind often that the key to effective cross-selling can be boiled down to mutual benefit on the parts of both the selling and buying parties, and suitability, suitability, suitability (Banner, 2011 Francis, 2008 and NRMLA, 2008).ReferencesBAAPS The British Association of Aesthetic Plastic Surgeons (2012, February 10). Cross-selling to breast implant scandal victims immoral. The British Association of Aesthetic Plastic Surgeons. Retrieved February 26, 2013, from http//www.baaps.org.uk/about-us/press-releases/1136-cross-selling -to-breast-implant-scandal-victimes-immoral Banner, M. (2011, May). Originating biography at Home Brings Peace of Mind. The Reverse Review. Retrieved from http//www.reversereview.com/magazine/3862-living-at-home-brings-peace-of-mind.html Business Dictionary (2013). What is scalable? Definition and meaning. In BusinessDictionary.com Online Business Dictionary. Retrieved February 25, 2013, from http//www.businessdictionary.com/definition/scalable.html Coppock, D. S. (2002, June 21). Why Lift? Information Management. Retrieved February 24, 2013, from http//www.information-management.com/password/5329-1.html CRM Magazine (2010, February 19). What Is CRM? CRM Magazine. destinationCRM.com The leading resource for Customer Relationship Management from the editors of CRM magazine. Retrieved February 24, 2013, from http//www.destinationcrm.com/Articles/CRM-News/Daily-News/What-Is-CRM-46033.aspx Fatah, F. (2011, May 5). BBC News A little lipo with your facial, madam?. BBC Homepage. Ret rieved February 26, 2013, from http//www.bbc.co.uk/news/health-13228094 Francis, P. T. (2008). Cross-Selling Your Hospitals Capabilities. Clinical Laboratory Sales Training with dig Francis. Retrieved February 26, 2013, from http//www.clinlabsales.com/pdf/Cross-Selling-092508.pdf Goodhue, D. L., Wixom, B. H., & Watson, H. J. (2002). Realizing Business Benefits through CRM Hitting the Target in the Right Way. MIS every quarter Executive, 1(2), 79