This chapter describes the importance and benefits of data mining and gives a detailed overview of the underlying process. The data mining procedure breaks down into five subsections: defining the business objectives, getting the raw data, identifying relevant variables, gaining customer insight, and acting. The discussion of these steps will help the reader understand the overall process of data mining. Furthermore, the process steps are illustrated with the case study of Credite Est (name disguised), a French mid-tier bank. Finally, the case study, “Yapi Kredi—Predictive Model–Based cross-sell Campaign,” shows a comprehensive application of data mining.
We thank Frank Block, Ph.D., of FinScore Corporation (Switzerland) for his collaboration on this chapter.
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