A Survey on Application of Data mining in CRM

1.Introduction: CRM started in the late 1990’s when the organization realized that According to chen et.al Customer relation management can be defined as the combination of people, process and technology. Another definition says that CRM is the process of interacting with the current and future customers and analyzing the history of customers with the organization which helps in improving the relationship with the customers which increases the customer retention which in turn improves sales growth of the business. CRM is broadly classified into 3 types i) operational CRM ii) Analytical iii) Collaborative. Operational CRM is nothing but the automation of marketing activities. Analytical CRM plays major role in analyzing the customer and predict the futuristic returns from the customer so proper plan on the investment can be made. Collaborative CRM deals with how various departments work collaboratively by sharing the information among them. In this paper we consider the analytical CRM and we will be studying how data mining techniques play an important role in customer relation management.