E-Retail Example--Finding Business Objectives

A Web-Mining Scenario Using CRISP-DM

As more companies make the transition to selling over the Web, an established computer/electronics e-retailer is facing increasing competition from newer sites. Faced with the reality that Web stores are cropping up as fast (or faster!) than customers are migrating to the Web, the company must find ways to remain profitable despite the rising costs of customer acquisition. One proposed solution is to cultivate existing customer relationships in order to maximize the value of each of the company's current customers.

Thus, a study is commissioned with the following objectives:

• Improve cross-sales by making better recommendations.
• Increase customer loyalty with a more personalized service.

Tentatively, the study will be judged a success if:

• Cross-sales increase by 10%.
• Customers spend more time and see more pages on the site per visit.
• The study finishes on time and under budget.