Customer Relationship Management Systems Handbook

The Technology of CRM 117

of population segmentation models, such as demographic-based customer

segments. Additional analysis using standard analytical and other data mining

techniques can determine the characteristics of these segments with respect

to some desired outcome. For example, the buying habits of multiple

population segments might be compared to determine which segments to

target for a new marketing campaign.

Estimation is a variation on the classification technique. Essentially, it

involves the generation of scores along various dimensions in the data. Rather

than employing a binary classifier to determine whether a loan applicant, for

instance, is approved or classified as a risk, the estimation approach generates

a credit-worthiness score ...