Effectiveness of Data Mining Tools and Techniques for Customer Relationship Management Systems in Indian Banking Sector

Abstract

The success of Customer Relationship Management (CRM) System mainly depends upon the effectiveness of data mining tools and techniques. Services industries are adopting the CRM in anticipation of gaining business out of the implementation. The financial services sectors, especially banks in India are making use of technology with internet banking, e-commerce, mobile banking, and CRM as its latest buzz. The amount of money involved is immense and therefore need was felt to identify what is gained out of the whole initiative. As the CRM is in its early stage of growth, there are no standard methods to practice and to evaluate the effectiveness. Data mining tools play major role in the success of CRM and hence the effectiveness of data mining software should also be measured. There are few methods used to evaluate the effectiveness of data mining tools for CRM systems, but still the literature available on the data mining reveals that there is no agreed upon metrics, standard methods, or model to do the evaluation. newline