Customer Relationship Management (CRM) Viewed by and Analysed by Probability Distribution

Kamlesh L Patel, Dr. Sanjay G Raval, Dr. S R Patel

Abstract: In the modern age of competition banking sector forces on bank to deal with their customers more professionally, therefore most of the banks use Customer Relationship Management (CRM) practices. Bank maximizes the customer satisfaction level by trying to understand the behaviours of the customer. In this paper customer’s behaviour can be understood by the associations of attributes like safety, stability, services and bank charges. We assume frailty multinomial model for associations. We simulated many observations for this model by Monte Carlo (MC) method with the help of R language. Further correlation, multiple correlations, Partial correlation between associations, mle of associations can be obtained. Also a particular case of stability and safety has been studied by binomial generation.

Keywords: Customer Relationship Management CRM, Multinomial distribution, Monte Carlo Simulation, Maximum Likelihood Estimate mle