Evaluating effectiveness of data mining software for CRM systems

Financial services sector is one of the earliest adaptors of technological driven initiatives. Customer Relationship Management (CRM) systems are implemented to identify the most profitable customers and manage the relationship of company with them. Intelligent data mining tools and techniques are used as backbone to the whole CRM initiative taken by the companies. Data mining tools comb the data warehouse maintained by the companies and predict the hidden patterns and present them in form of a model. Strategic decisions about the customers can be taken based on the outcomes of these models. Thus it is important to evaluate the effectiveness of the data mining software used for these systems. This paper presents a method for evaluating the data mining software on the basis of which performance of a data mining tool can be evaluated and appropriate tool can also be selected from the various software available.