CRM and data mining Day 07

It costs six times more to sell to a new customer than to an existing one.
A typical dissatisfied customer will tell 8-10 people.
By increasing the customer retention rate by 5%, profits could increase by (e.g.) 85% (or more).
Odds of selling to new customers = 15%, as compared to those for existing customers (50%).
70% of the complaining customers will remain loyal if problem is solved.
90% of companies do not have the sales and service integration to support e-commerce.

Customers are not all "created equal".
Some customers are more valuable than others.
Therefore, for the company, not all customers should be treated equally.

The figure below shows different human life stages.

Data mining in customer life cycle.

Data Cube

The dimensions allow the store to keep track of things like monthly sales of items and the branch locations where items are sold.

The figure below shows a 3D data cube.

The figure below shows a 4D data cube.

The figure below shows a lattice of cuboids.

A comparison of OLTP and OLAP.

References

1. FIT5158 Monash University Lecture Notes, 2012
2. Andy Oppel (2011), Database Demystified, 2nd Ed, McGraw-Hill.