Application of data mining in direct marketing in banking sector

Pavlović, Dejana and Reljić, Marija and Jaćimović, Sonja (2014) Application of data mining in direct marketing in banking sector. Industrija: časopis za ekonomiku industrije, 42 (1). pp. 189-201. ISSN 0350-0373

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Abstract

The key of a successful business operation lies in a good communication with clients, and therefore companies are paying more attention to Customer Relationship Management. One strategy of the CRM is to analyze and understand the consumer’s behaviour and characteristics, and to reach the necessary answers based on the implementation of the direct marketing campaign. The aim of this study is to identify factors that would indicate the customers who are ready to submit long-term deposit to the bank. The obtained results will distinguish the group of clients who are satisfied with the bank's operations and are ready to participate in marketing campaigns. Having compared the methods used in the study, the method of classification has proved to be more reliable than others. This analysis obtains results through the use of data mining algorithm known as decision trees. The disadvantage of this method is inaccurate data supplied by the client.

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