Conducting Efficient and Cost-Effective Targeted Marketing Using Data Mining Techniques

Due to the downward economy, many companies are losing their existing customers and it is a big challenge to obtain new customers. All the companies continue to pursue every available opportunity to enhance their competitiveness. Consequently, targeted marketing has become part of their management practice. Targeted marketing is not only an efficient way to maintain good relationship with existing customers, but also a very important method to find potential customers. It can identify the common attributes of companies' most profitable customers using the current customer relationship management (CRM) data. Potential customers can be identified using these common attributes. In this paper, data mining techniques are applied to improve the targeted marketing process.