Application of ID3 Algorithm in Customer Classification Based on CRM

摘要

With the development of data management technology and the explosive growth of customer's data, the combination of decision tree technology and customer classification becomes the main method of modern management. Firstly, this paper introduces Customer Relationship Management and the decision tree techniques, and then analyzes the ID3 algorithm of decision tree and its practical use in customer classification. According to analytical results from practical instance, the paper summarizes rules of customer classification, puts forward corresponding marketing strategies to different customers, and discusses the meaning and value of decision tree analysis technology in the customer classification. The study is helpful for enterprises to command market better and find latent customers.