Chapter 9 Customer Relationship Management and Business Intelligence{0}
How Europeans Are Using Data Mining
According to the article businesses world wide are investing a lot of money and resources into what they believe are the necessary tools to help them make better decisions. One of the tools that are helping businesses around the world is data mining. Data mining is the process of collecting data and offering information that raw data doesn’t. Data mining can also be a summary of data. The article focuses mainly on how Europeans use data mining to help make better decisions. Italian car manufacturer Fiat has been using data mining since 2005 and also has helped improve business interactions with their customers. “Giovanni Lux, customer intelligence manager for Fiat (FIA.MI), told silicon.com the company has been able to retain more customers and reduce churn, and said customer retention has improved by six or seven per cent since the company started to use the technology, with 54 per cent of Fiat owners replacing their cars now buying another Fiat Group car”. The data that Fiat collects allows the company to use the data, and to see how customers react to a certain brand as well as dealers and online services. According to the article, the information is collected using survey questionnaires that are completed by current customers. The company also buys data from other public sources as well. Once the information is collected, Fiat and other companies use the data mining tools to figure out which customers are best to target as well as improving how dealers provide their services.
Reference: Ferguson, Tim. (2009). Technology. How Europeans Are Using Data Mining. Businessweek. Retrieved from: http://www.businessweek.com/globalbiz/content/may2009/gb20090517_529807.htm