Data mining and marketing approach to track customer movements

Abstract

Many business problems are of interest to both data mining and marketing academic communities, such as market segmentation, direct marketing, targeted marketing, personalization/customization, cross selling, discovering customer lifetime value and customer behaviour. Yet, these two disciplines have very different approaches to analyzing these problems. Data mining research incorporates methodologies from various research disciplines such as statistics, machine learning, database technology, optimization and pattern recognition, and hence has a richer pool of knowledge/model representation. On the other hand marketing research urges more theory-based analysis and its theories are often built upon statistics, economics, econometrics and other social sciences. In this paper we propose an approach to integrate and use a data mining methods for solving marketing problems specifically, the area of email marketing.