Use of Data Mining to Derive Crm Strategies of an Automobile Repair Service Center in Korea

Problems of a Korean automobile repair service center stem from the fact that a large portion of customers stop visiting the center for unknown reasons. So, we collected and analyzed the customer-related data in order to resolve those problems. We first defined customer class based on the R-F-M variables. Then, we built a customer classification model (i.e., a decision tree). Finally, we extracted characteristics (i.e., sequential patterns of services) of each customer class for each kind of automobile. What we learned is that the results of the analysis can be used together in order to provide better services so that total revenue of the center can be increased.