Optimized feature extraction and actionable knowledge discovery for Customer Relationship Management (CRM)

  • Authors:
  • P. Senthil Vadivu;Vasantha Kalyani David

  • Affiliations:
  • Hindusthan College Of Arts and Science, Coimbatore, Tamil Nadu, India;Avinashilingam Deemed University, Coimbatore, Tamil Nadu, India

  • Venue:
  • Proceedings of the Second International Conference on Computational Science, Engineering and Information Technology
  • Year:
  • 2012

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Abstract

Data mining techniques to customer relationship management (CRM), is that there is a lack of a comprehensive literature review and a classification scheme for it. This paper indicate that the research area of customer retention received most research attention. Classification and Association models are the two commonly used models for data mining in CRM. Algorithms are used in data mining to discover customer models for distribution information, that are used in Customer Relationship Management (CRM), to point out customers who are loyal and who are attritors, but human experts is a must for discovering knowledge manually. Many post processing techniques have been introduced that do not suggest action to increase the objective function such as profit. In this paper, a feature extraction technique is proposed for the best approximation property and to increase the profit. To deal with high dimensional data, efficient and robust feature extraction and feature selection methods are necessary. Feature extraction can be achieved by implementing some criteria from which an optimal solution can be found. An automatic non-parameter Uncorrelated Discriminant Analysis (UDA) algorithm based on Maximum Margin Criterion (MMC) is used. The extracted features via UDA are statistically uncorrelated. It serves as an effective solution for small sample size problem. The extracted features are given as an input to a novel algorithm that suggests actions to change the customer from the undesired status to the desired one. These algorithms can discover the reduction in cost and transform customer from undesirable classes to desirable ones. The UDA algorithm is evaluated in terms of classification accuracy and robustness. Many tests have been conducted and experimental results have been analyzed in this paper