Data Mining in Electronic Commerce

Modern business is rushing toward e-commerce. If the transition is done properly, it enables better management, new services, lower transaction costs and better customer relations. Success depends on skilled information technologists, among whom are statisticians. This paper focuses on some of the contributions that statisticians are making to help change the business world, especially through the development and application of data mining methods. This is a very large area, and the topics we cover are chosen to avoid overlap with other papers in this special issue, as well as to respect the limitations of our expertise. Inevitably, electronic commerce has raised and is raising fresh research problems in a very wide range of statistical areas, and we try to emphasize those challenges.Comment: Published at http://dx.doi.org/10.1214/088342306000000204 in the Statistical Science (http://www.imstat.org/sts/) by the Institute of Mathematical Statistics (http://www.imstat.org

Marketing relations and communication infrastructure development in the banking sector based on big data mining

Purpose: The article aims to study the methodological tools for applying the technologies of intellectual analysis of big data in the modern digital space, the further implementation of which can become the basis for the marketing relations concept implementation in the banking sector of the Russian Federation‘ economy. Structure/Methodology/Approach: For the marketing relations development in the banking sector in the digital economy, it seems necessary: firstly, to identify the opportunities and advantages of the big data mining in banking marketing; secondly, to identify the sources and methods of processing big data; thirdly, to study the examples of the big data mining successful use by Russian banks and to formulate the recommendations on the big data technologies implementation in the digital marketing banking strategy. Findings: The authors‘ analysis showed that big data technologies processing of open online and offline sources of information significantly increases the data amount available for intelligent analysis, as a result of which the interaction between the bank and the target client reaches a new level of partnership. Practical Implications: Conclusions and generalizations of the study can be applied in the practice of managing financial institutions. The results of the study can be used by bank management to form a digital marketing strategy for long-term communication. Originality/Value: The main contribution of this study is that the authors have identified the main directions of using big data in relationship marketing to generate additional profit, as well as the possibility of intellectual analysis of the client base, aimed at expanding the market share and retaining customers in the banking sector of the economy.peer-reviewe

Keynote address: the networked bank

Technology ; Banks and banking - Customer services ; Automated tellers

Measuring the effect of customer relationship management (CRM) components on the non financial performance of commercial banks: Egypt case

This paper presents customer relationship management (CRM) components as applied on the Egyptian Commercial Banks, examined from the bankers' point of view. Then, it intends to measure their effect on the level of customer satisfaction and loyalty from the customers’ point of view as examples of the non financial performance measures. The paper is quantitative in nature and consists of two different structured questionnaires using convenience/quota sampling. The first involved 180 employees in order to measure CRM applicability, and the second involved 270 customers to measure the level of customer satisfaction and loyalty and their effect on the Egyptian Commercial Banks' financial performance The findings show that the selected banks apply CRM components but the level of application differs from one bank to another. The results showed a significant positive relationship between CRM and customer satisfaction in the Egyptian Commercial Banks, when applying them together and not separately. In addition, there is a strong positive effect between customer satisfaction and loyalty which was reflected on the Commercial Banks' financial performance. The findings confirm the importance of studying and implementing CRM to achieve customer loyalty and improve the Egyptian Commercial Banks financial performance. Banks wishing to improve their relationships with customers need to focus on the CRM components to develop relevant and effective marketing strategies and tactics. The paper measures the CRM as a multidimensional construct as applied on the Egyptian Commercial Banks and relate it to the achievement of the ultimate goal of retaining customers to gaining a sustainable competitive advantage and achieve more profits

The research on customer structure characteristics and marketing measures of regional bank agency: a case from the Agricultural Bank of China

With intensified opening degree and increasingly fierce market competition of commercial banks, commercial banks innovate their products constantly and improve their service quality at the same time. The Agricultural Bank of China (ABC) is a state-owned commercial bank that has built branches in all county-level districts. Instead, branches of ABC in county-level have become the weakest links that reduce ABC’s competitive power. If the flaws in customer and market maintenance in the county-level branches are ever to be repaired, in my opinion, meeting customer perceived service quality and customer demands efficiently based on understanding of customer needs should be put in the first priority currently. Firstly, this part studies the customer segmentation of ** branch of Agricultural Bank of China. This thesis puts forward approach to segment bank customers based on the improved k-means clustering. The results show that the improvement algorithm effectively overcomes the defect that traditional k-means algorithm easily falls into local optimal value, increasing the accuracy of customer classification, and contributing to more reasonable clustering results. Secondly, this thesis uses the econometric panel data model to study the relationship between customer structure and bank performance. The results indicate that a good customer structure can bring benefits for banks and improve their competitiveness. Thirdly, this part analyzes different service quality requirements of different types customer in the ** branch of Agricultural Bank of China. We combine service quality evaluation theory and the background of Chinese commercial banks, establishing the SERVQUAL model for the ** branch. The Study has shown that the correlation coefficient between overall perception of service quality and customer satisfaction is positive; the overall perception of service quality and customer willingness to recommend are also positively correlated, but the degree of correlation is lower than the correlation between the overall perception of service quality and customer satisfaction; the correlation of overall perceived quality of service for all samples and willingness to accept the services of other banks correlation was not significant. At the same time, there is still a gap between the customer perceived service quality and customer expectation in the ** branch of Agricultural Bank of China. Finally, according to the results of customer structure classification and service quality survey of the ** branch of Agricultural Bank of China, the marketing strategies for different customer groups are proposed.Com o crescente grau de comercialização da indústria bancária chinesa e a entrada continua de bancos estrangeiros, a competição entre bancos está a tornar-se cada vez mais feroz, e as estratégias dos bancos comerciais com vista a ganhar vantagens competitivas muda gradualmente. Para além do lançamento de uma variedade de produtos financeiros, os bancos comerciais utilizam serviços diferenciados para poder dar resposta á procura do mercado diversificado de consumidores. Estes bancos estão igualmente a começar a entender que para os bancos gradualmente convergirem devem não só atingir uma vantagem competitiva através da oferta de produtos financeiros bem como serviços diferenciados de alta qualidade. Este meio tornou-se na única forma forma que o banco dispõe para poder vencer a sua competição. Portanto, para os bancos comerciais, estamos num período de inovação onde o aumento da qualidade de serviço é inevitável. O Agricultural Bank of China é um banco comercial do estado que possui uma filial em todas as regiões administrativas a nível de condado. Ligações e serviços, citadinos e urbanos tem sido a maior vantagem do Agricultural Bank of China, mas a situação actual não é favorável. A filial a nível de condado tem-se tornado na ligação pior e mais fraca da fundação deste banco. Ao mesmo tempo, bancos privados têm emergido em paridade com o rápido desenvolvimento dos instrumentos financeiros online e, o Agricultural Bank of China, como o representante dos bancos tradicionais está a enfrentar competição feroz. Em especial desvantagem no que toca a recursos ao consumidor e instrumentos online que os outros bancos oferecem. Os bancos comerciais tradicionais, estão desta forma confrontados com a perda de clientes bem como o elevado custo de adquirir novos clientes. O risco operacional do banco aumenta á medida que a estabilidade do mercado consumidor piora. Se querem mudar o status quo das filiais a nível de condado, necessitam entender a actual necessidade da qualidade de serviço ao cliente, analisar as características da procura do consumidor e estabelecer um mecanismo de ciclo virtuoso de mercado-consumidor-beneficio - são as maiores prioridades agora. Baseado nisto, este estudo usará marketing, processo de decisão da gerência, teoria e métodos, mineração de dados, técnicas estatísticas e métodos econométricos para analisar as características de procura do consumidor do Agricultural Bank of China. Primeiro, utilizar a análise de cluster de mineração de dados para efectuar uma estratificação analítica do grupo de consumidores do banco para manter a estrutura da procura dos consumidores e serviços; classificação da informação de procura dos consumidores, acesso ás tendências de procura dos consumidores do banco e tendência de produtos competitivos; na base de quantificar os requerimentos do consumidor, usamos o painel de dados econométricos para efectuar uma análise empírica sobre a estrutura de procura dos consumidores e a performance do Agricultural Bank of China

A Study on CRM Implementation in Chinese Commercial Banks

The paper first presents the theory of Customer Relationship Management (CRM) under E-commerce circumstances. It then focuses on the motives and obstructions in implementing CRM in Chinese commercial banks. Further, the paper puts forward a trial solution to these specific problems to be a solving aid to Chinese commercial banks under Customer Relationship Management

The use of differentiating communication tools to attract and retain different generational cohorts: case of a commercial bank in South Africa.

Published ThesisIt is inconceivable for any organisation to think that communicating with all of its clients using the same communications tools would make these clients more loyal. The problem of using the right tools of communication becomes more complex when the organisation deals with different generations. Previous scholars have emphasised the importance of Customer Relationship Management (CRM), both as a business philosophy and as part of an organisation’s IT systems to attract and retain clients. The IT systems are put in place so that clients can easily communicate with the organisation and vice versa. The CRM business philosophy is meant to change the method of dealing with clients as a top-down approach. This means top management will create the type of environment in the organisation that positions the needs of customers first. The primary objective of this study was to investigate the use of different communication tools by a commercial bank to attract and retain clients from different generations. The researcher identified four different branches from the same commercial bank in Bloemfontein to conduct the study. The location of these branches in and around Malls was important because it allowed the researcher to get a wide variety of different clients of the bank. A total of 50 clients of the bank per branch were asked to complete a questionnaire. The statistical calculations that were used were frequency tables, cross tables, McNemar test and the Chi-Square test. The research findings revealed that respondents from both generations made use of a variety of traditional and modern communication tools that were given in the questionnaire. It also indicates that this commercial bank at times utilises the wrong communication tools to communicate with these two cohorts, whether it is traditional or modern communication tools. The usage of each specific traditional and modern communication tool is also important. The results indicate that the usage of the specific communication tools for both traditional and modern communication tools vary during the course of the day. This is true for both generational cohort respondents. Based on the findings of this empirical study, the bank should focus more on utilising the specific communication tools that these two generations prefer, whether it is traditional or modern communication tools. The bank should also pay specific attention to the times of the day that these aforementioned communication tools are being used most by the respondents to ensure maximum marketing exposure. This study illustrates that there is no universal rule that dictates that a specific generation will only use a specific communication tool - in this case the Baby Boomer and Generation Y generation. The bank should investigate which modern or traditional communication tools are preferred by their clients the most and then continue with productive two way communication using those tools. This can facilitate the process of making clients more loyal and the process of attracting new clients simpler