Data Mining Techniques: For Marketing, Sales, and Customer Relationship Management, Second ...

672 Pages·1999·11.81 MB·English

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Data Mining Techniques
For Marketing, Sales, and
Customer Relationship
Management
Second Edition
Michael J.A. Berry
Gordon S. Linoff
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Data Mining Techniques
For Marketing, Sales, and
Customer Relationship
Management
Second Edition
Michael J.A. Berry
Gordon S. Linoff
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Vice President and Executive Group Publisher: Richard Swadley
Vice President and Executive Publisher: Bob Ipsen
Vice President and Publisher: Joseph B. Wikert
Executive Editorial Director: Mary Bednarek
Executive Editor: Robert M. Elliott
Editorial Manager: Kathryn A. Malm
Senior Production Editor: Fred Bernardi
Development Editor: Emilie Herman, Erica Weinstein
Production Editor: Felicia Robinson
Media Development Specialist: Laura Carpenter VanWinkle
Text Design & Composition: Wiley Composition Services
Copyright  2004 by Wiley Publishing, Inc., Indianapolis, Indiana
All rights reserved.
Published simultaneously in Canada
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Library of Congress Cataloging-in-Publication Data:
Berry, Michael J. A.
Data mining techniques : for marketing, sales, and customer
relationship management / Michael J.A. Berry, Gordon Linoff.— 2nd ed.
p. cm.
Includes index.
ISBN 0-471-47064-3 (paper/website)
1. Data mining. 2. Marketing—Data processing. 3. Business—Data
processing. I. Linoff, Gordon. II. Title.
HF5415.125 .B47 2004
658.8’02—dc22
2003026693
ISBN: 0-471-47064-3
Printed in the United States of America
10 9 8 7 6 5 4 3 2 1
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To Stephanie, Sasha, and Nathaniel. Without your patience and
understanding, this book would not have been possible.
— Michael
To Puccio. Grazie per essere paziente con me.

Ti amo.

— Gordon
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Acknowledgments
We are fortunate to be surrounded by some of the most talented data miners
anywhere, so our first thanks go to our colleagues at Data Miners, Inc. from
whom we have learned so much: Will Potts, Dorian Pyle, and Brij Masand.
There are also clients with whom we work so closely that we consider them
our colleagues as well: Harrison Sohmer and Stuart E. Ward, III are in that cat­
egory. Our Editor, Bob Elliott, Editorial Assistant, Erica Weinstein, and Devel­
opment Editor, Emilie Herman, kept us (more or less) on schedule and helped
us maintain a consistent style. Lauren McCann, a graduate student at M.I.T.
and intern at Data Miners, prepared the census data used in some examples
and created some of the illustrations.
We would also like to acknowledge all of the people we have worked with
in scores of data mining engagements over the years. We have learned some­
thing from every one of them. The many whose data mining projects have
influenced the second edition of this book include:
Al Fan Herb Edelstein Nick Gagliardo
Alan Parker Jill Holtz Nick Radcliffe
Anne Milley Joan Forrester Patrick Surry
Brian Guscott John Wallace Ronny Kohavi
Bruce Rylander Josh Goff Sheridan Young
Corina Cortes Karen Kennedy Susan Hunt Stevens
Daryl Berry Kurt Thearling Ted Browne
Daryl Pregibon Lynne Brennen Terri Kowalchuk
Doug Newell Mark Smith Victor Lo
Ed Freeman Mateus Kehder Yasmin Namini
Erin McCarthy Michael Patrick Zai Ying Huang
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xx Acknowledgments
And, of course, all the people we thanked in the first edition are still deserv­
ing of acknowledgement:
Bob Flynn Jim Flynn Paul Berry
Bryan McNeely Kamran Parsaye Rakesh Agrawal
Claire Budden Karen Stewart Ric Amari
David Isaac Larry Bookman Rich Cohen
David Waltz Larry Scroggins Robert Groth
Dena d’Ebin Lars Rohrberg Robert Utzschnieder
Diana Lin Lounette Dyer Roland Pesch
Don Peppers Marc Goodman Stephen Smith
Ed Horton Marc Reifeis Sue Osterfelt
Edward Ewen Marge Sherold Susan Buchanan
Fred Chapman Mario Bourgoin Syamala Srinivasan
Gary Drescher Prof. Michael Jordan Wei-Xing Ho
Gregory Lampshire Patsy Campbell William Petefish
Janet Smith Paul Becker Yvonne McCollin
Jerry Modes
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About the Authors
Michael J. A. Berry and Gordon S. Linoff are well known in the data mining
field. They have jointly authored three influential and widely read books on
data mining that have been translated into many languages. They each have
close to two decades of experience applying data mining techniques to busi­
ness problems in marketing and customer relationship management.
Michael and Gordon first worked together during the 1980s at Thinking
Machines Corporation, which was a pioneer in mining large databases. In
1996, they collaborated on a data mining seminar, which soon evolved into the
first edition of this book. The success of that collaboration gave them the
courage to start Data Miners, Inc., a respected data mining consultancy, in
1998. As data mining consultants, they have worked with a wide variety of
major companies in North America, Europe, and Asia, turning customer data­
bases, call detail records, Web log entries, point-of-sale records, and billing
files into useful information that can be used to improve the customer experi­
ence. The authors’ years of hands-on data mining experience are reflected in
every chapter of this extensively updated and revised edition of their first
book, Data Mining Techniques.
When not mining data at some distant client site, Michael lives in Cam­
bridge, Massachusetts, and Gordon lives in New York City.
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