Think of a business process in an organization that you work for (or another that you are familiar with) and that presently uses or could benefit from data mining. Refer to the below Figure and answer the following :

Analytic Application Business Question Business Value Customer What market segments Personalize customer Segmentation do my customers fall relationships for higher into and what are their customer satisfaction characteristics? and retention. Propensity to Buy Which customers are Target customers most likely to respond based on their need to my promotion? to increase their loyalty to your product line. Also, increase campaign profitability by focusing on the most likely to buy. Customer What is the lifetime Make individual Profitability profitability of my business interaction customer? decisions based on the overall profitability of customers. Fraud Detection How can I tell which Quickly determine fraud transactions are likely and take immediate to be fraudulent? action to minimize cost. Customer Which customer is Prevent loss of high- Attrition at risk of leaving? value customers and let go of lower value customers. Channel What is the best channel Interact with customers Optimization to reach my customer in based on their each segment? preference and your need to manage cost