Data mining application in customer relationship management of credit card business

Authors:
Ruey-Chyi Wu;Ruey-Shun Chen;Chan-Chine Chang;J. Y. Chen
Affiliations:
Institute of Information Management, National Chiao Tung University, Taiwan.;Institute of Information Management, National Chiao Tung University, Taiwan.;Institute of Information Management, National Chiao Tung University, Taiwan.;Institute of Information Management, National Chiao Tung University, Taiwan.
Venue:
COMPSAC-W'05 Proceedings of the 29th annual international conference on Computer software and applications conference
Year:
2005

Citing 5
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Abstract

First, we classify the selected customers into clusters using RFM model to identify high-profit, gold customers. Subsequently, we carry out data mining using association rules algorithm. We measure the similarity, difference and modified difference of mined association rules based on three rules, i.e. Emerging Patten Rule, Unexpected Change Rule, and Added/Perished Rule. In the meantime, we use rule matching threshold to derive all types of rules and explore the rules with significant change based on the degree of change measured. In this paper, we employ data mining tools and effectively discover the current spending pattern of customers and trends of behavioral change, which will allow management to detect in a large database potential changes of customer preference, and provide as early as possible products and services desired by the customers to expand the clientele base and prevent customer attrition.