APPLICATION OF PREDICTIVE ANALYTICS IN CUSTOMER RELATIONSHIP MANAGEMENT: A LITERATURE REVIEW AND CLASSIFICATION

This study is aimed to provide a comprehensive literature review and a classification scheme for application of predictive analytics and tools in customer relationship management (CRM). The application of predictive analytics in CRM is an emerging trend. PA methods help to analyze and understand customer behaviors and acquire and retain customers and also maximize customer value. Thus it facilitates CRM decisions making and supports development of CRM strategies in a customer-centric economy. This paper is aimed to present a comprehensive review of literature related to application of predictive analytics in CRM published in both academic and practitioner journals between 2003 and 2013

Churn prediction based on text mining and CRM data analysis

Within quantitative marketing, churn prediction on a single customer level has become a major issue. An extensive body of literature shows that, today, churn prediction is mainly based on structured CRM data. However, in the past years, more and more digitized customer text data has become available, originating from emails, surveys or scripts of phone calls. To date, this data source remains vastly untapped for churn prediction, and corresponding methods are rarely described in literature. Filling this gap, we present a method for estimating churn probabilities directly from text data, by adopting classical text mining methods and combining them with state-of-the-art statistical prediction modelling. We transform every customer text document into a vector in a high-dimensional word space, after applying text mining pre-processing steps such as removal of stop words, stemming and word selection. The churn probability is then estimated by statistical modelling, using random forest models. We applied these methods to customer text data of a major Swiss telecommunication provider, with data originating from transcripts of phone calls between customers and call-centre agents. In addition to the analysis of the text data, a similar churn prediction was performed for the same customers, based on structured CRM data. This second approach serves as a benchmark for the text data churn prediction, and is performed by using random forest on the structured CRM data which contains more than 300 variables. Comparing the churn prediction based on text data to classical churn prediction based on structured CRM data, we found that the churn prediction based on text data performs as well as the prediction using structured CRM data. Furthermore we found that by combining both structured and text data, the prediction accuracy can be increased up to 10%. These results show clearly that text data contains valuable information and should be considered for churn estimation

A Systematic Review of Consumer Behaviour Prediction Studies

Due to the importance of Customer behaviour prediction, it is necessary to have a systematic review of previous studies on this subject. To this effect, this paper therefore provides a systematic review of Customer behaviours prediction studies with a focus on components of customer relationship management, methods and datasets. In order to provide a comprehensive literature review and a classification scheme for articles on this subject 74 customer behaviour prediction papers in over 25 journals and several conference proceedings were considered between the periods of 1999- 2014. Two hundred and thirty articles were identified and reviewed for their direct relevance to predicting customer behaviour out of which 74 were subsequently selected, reviewed and classified appropriately. The findings show that the literature on predicting customer behaviour is ongoing and is of most importance to organisation. It was observed that most studies investigated customer retention prediction and organizational dataset were mostly used for the prediction as compared to other form of dataset. Also, comparing the statistical method to data mining in predicting customer behaviour, it was discovered through this review that data mining is mostly used for prediction. On the other hand, Artificial Neural Network is the most commonly used data mining method for predicting customer behaviour. The review was able to identify the limitations of the current research on the subject matter and identify future research opportunities in customer behaviour prediction

A Systematic Review of Consumer Behaviour Prediction Studies

Due to the importance of Customer behaviour prediction, it is necessary to have a systematic review of previous studies on this subject. To this effect, this paper therefore provides a systematic review of Customer behaviours prediction studies with a focus on components of customer relationship management, methods and datasets. In order to provide a comprehensive literature review and a classification scheme for articles on this subject 74 customer behaviour prediction papers in over 25 journals and several conference proceedings were considered between the periods of 1999-2014. Two hundred and thirty articles were identified and reviewed for their direct relevance to predicting customer behaviour out of which 74 were subsequently selected, reviewed and classified appropriately. The findings show that the literature on predicting customer behaviour is ongoing and is of most importance to organisation. It was observed that most studies investigated customer retention prediction and organizational dataset were mostly used for the prediction as compared to other form of dataset. Also, comparing the statistical method to data mining in predicting customer behaviour, it was discovered through this review that data mining is mostly used for prediction. On the other hand, Artificial Neural Network is the most commonly used data mining method for predicting customer behaviour. The review was able to identify the limitations of the current research on the subject matter and identify future research opportunities in customer behaviour prediction.Keywords: Consumer Behaviour, Prediction, Statistics, Data Mining, Dataset, Customer Relationship Management, Literature Revie

Classificação Automática das Reclamações de Clientes de uma Empresa de Telecomunicações

No Brasil as empresas de telecomunicações são regulamentadas por órgãos de defesa do consumidor que recebem reclamações dos clientes das operadoras e podem penalizar as mesmas. Esse trabalho tem por objetivo avaliar se o uso de técnicas de mineração de textos para a criação de novos atributos contribui na identificação de clientes que não receberam atendimento adequado em centrais de gerenciamento do relacionamento com clientes (CRM) e evitar que estes migrem do ambiente interno de atendimento para órgãos regulamentadores. Para isso é utilizado dados extraídos de bases de CRM e aplicado diversos algoritmos de classificação. Nos experimentos o modelo que utilizou as entradas geradas pela mineração de textos se apresentou superior ao modelo tradicional, comprovando a eficácia do modelo

Using text-mining-assisted analysis to examine the applicability of unstructured data in the context of customer complaint management

Double DegreeIn quest of gaining a more holistic picture of customer experiences, many companies are starting to consider textual data due to the richer insights on customer experience touch points it can provide. Meanwhile, recent trends point towards an emerging integration of customer relationship management and customer experience management and thereby availability of additional sources of textual data. Using text-mining-assisted analysis, this study demonstrates the practicality of the arising opportunity with means of perceived justice theory in the context of customer complaint management. The study shows that customers value interpersonal aspects most as part of the overall complaint handling process. The results link the individual factors in a sequence of ‘courtesy → interactional justice → satisfaction with complaint handling’, followed by behavioural outcomes. Academic and managerial implications are discussed

Status Quo der Textanalyse im Rahmen der Business Intelligence

Vor dem Hintergrund der Zunahme unstrukturierter Daten für Unternehmen befasst sich dieser Beitrag mit den Möglichkeiten, die durch den Einsatz der Business Intelligence für Unternehmen bestehen, wenn durch gezielte Analyse die Bedeutung dieser Daten erfasst, gefiltert und ausgewertet werden können. Allgemein ist das Ziel der Business Intelligence die Unterstützung von Entscheidungen, die im Unternehmen (auf Basis strukturierter Daten) getroffen werden. Die zusätzliche Auswertung von unstrukturierten Daten, d.h. unternehmensinternen Dokumenten oder Texten aus dem Web 2.0, führt zu einer Vergrößerung des Potenzials und dient der Erweiterung des Geschäftsverständnisses der Verbesserung der Entscheidungsfindung. Der Beitrag erläutert dabei nicht nur Konzepte und Verfahren, die diese Analysen ermöglichen, sondern zeigt auch Fallbeispiele zur Demonstration ihrer Nützlichkeit.:1 Einführung 2 Business Intelligence 2.1 Definition 2.2 Ordnungsrahmen 2.3 Analyseorientierte BI und Data Mining 3 Text Mining 3.1 Berührungspunkte mit anderen Disziplinen 3.2 Definition 3.3 Prozessmodell nach HIPPNER & RENTZMANN (2006a) 3.3.1 Aufgabendefinition 3.3.2 Dokumentselektion 3.3.3 Dokumentaufbereitung 3.3.4 Text-Mining-Methoden 3.3.5 Interpretation / Evaluation 3.3.6 Anwendung 4 Potenziale der Textanalyse 4.1 Erweiterung des CRM 4.2 Alternative zur Marktforschung 5 Fazit und Ausblick Literaturverzeichni

Explain the Causes of Customer Dissatisfaction based on Text Mining Analysis

Customer satisfaction requires the customer to be happy both in daily and long-term and global interactions. People's opinions about the products of a company on websites and social media can provide useful information for companies to evaluate customer satisfaction. In this research, using the methodology text mining and k- means clustering, customers' opinions about the three brands of Snowa, Pakshoma and Parskhazar from domestic appliances and comments on the three brands of Samsung, LG, and Tefal from external home appliances in the website of Digikala.com were analyzed. The results of this study show that dissatisfaction factors were clustered in six attributes, product failure, and price proportions with performance, efficiency, design, manufacturing quality and after-sales services. In domestic appliances, the most dissatisfaction factors were the product failure, price proportions with performance, manufacturing quality, after-sales service, efficiency, and design. And the factors causing dissatisfaction in external home appliances were manufacturing quality, product failure, design, after-sales service, price proportions with performance, and efficiency