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Data pre-processing issues: A case study for database marketing

Abstract:

An effective marketing database as part of CRM system will enable us to analyze the data, to find out who our most profitable customers are and what characteristics they share. This will help give us a clear idea of what sort of person or organization to focus your marketing activities on, and it may be possible adopting strategies of Database Marketing (DBM). DBM faces today new challenges in business knowledge. Currently DBM strategies are mainly approached by classical statistical inference, which may fail when complex, multi-dimensional, and incomplete data is available. An alternative is to use Knowledge Discovery from Databases, which aims at automatic pattern extraction using Data Mining (DM) techniques. The patterns identified can be applied to the efficient characterization of the customers and to the database filtering process. This paper focus the problems commonly encountered in the data preprocessing before applying DM techniques, through a case study.