Data Mining

What is Data Mining?

• The process of collecting data from the internet without analysis

• The process of searching and analyzing a large batch of data to identify patterns and extract useful information

• A method of storing data in large data warehouses

• The process of deleting unnecessary data from the system

What is one of the core values of Data Mining in CRM?

• Predicting which customers are likely to leave

• Reducing production costs of products

• Automating the manufacturing process

• Developing new products without market research

Why do businesses need to use Data Mining instead of just storing customer data?

• Because data only has value when it is analyzed and utilized

• Because storing data is a mandatory legal requirement

• Because customers prefer businesses to collect their data

• Because Data Mining completely eliminates business errors

How does Netflix use Data Mining to predict customer churn?

• By analyzing how frequently customers watch content

• By counting the number of friends sharing an account

• By measuring the power consumption of streaming devices

• By identifying the type of device customers use to watch content

Which of the following is NOT an application of Data Mining in business?

• Identifying high-value customers

• Optimizing the supply chain

• Reducing the number of employees in a company

• Detecting customers at risk of canceling services

What Does American Express Use Data Mining For?

• To identify customers with high potential to become VIP clients

• To increase service fees for all customers

• To remove low-income customers from their system

• To automatically decline high-value transactions

Which of the following steps is NOT part of the prediction of the defined variable definition?

• Create a customer analysis perspective

• Create a variable analysis

• Determine the variable prediction

• Choose a model

What does customer data analysis help businesses do?

• What does customer data analysis help businesses do?

• Optimize marketing strategies

• Improve customer care efficiency

• All are correct

When determining the prediction variable, which of the following factors is important?

• Define the business goal

• Collect raw data

• Select factors that influence the analysis goal

• All are correct

Which stage in the process helps businesses understand customer behavior, preferences and needs?

• Determine the expectation of the variable

• Collect raw data

• Analyze customers

• Act