Application of neural networks in CRM systems

Lublin University of Technology, Faculty of Management, Department of Marketing, Nadbystrzycka 38, 20-618 Lublin, Poland

^* Corresponding author: a.bojanowska@pollub.pl

Abstract

The central aim of this study is to investigate how to apply artificial neural networks in Customer Relationship Management (CRM). The paper presents several business applications of neural networks in software systems designed to aid CRM, e.g. in deciding on the profitability of building a relationship with a given customer. Furthermore, a framework for a neural-network based CRM software tool is developed. Building beneficial relationships with customers is generating considerable interest among various businesses, and is often mentioned as one of the crucial objectives of enterprises, next to their key aim: to bring satisfactory profit. There is a growing tendency among businesses to invest in CRM systems, which together with an organisational culture of a company aid managing customer relationships. It is the sheer amount of gathered data as well as the need for constant updating and analysis of this breadth of information that may imply the suitability of neural networks for the application in question. Neural networks exhibit considerably higher computational capabilities than sequential calculations because the solution to a problem is obtained without the need for developing a special algorithm. In the majority of presented CRM applications neural networks constitute and are presented as a managerial decision-taking optimisation tool.