The article describes different types of data mining tools, and the potential areas of applications of those in customer management. In addition, it embodies a frame work for identifying the customers who need the attention of the organization for longer retention using data mining tools with particular reference to the telecommunication industry.Companies, in recent years have implemented automatic data collection solutions, which have resulted in the availability of large amounts of data with them. To benefit from the large amount of data they have started implementing analytical and data mining tools.

Data mining is the non-trivial extraction of novel, implicit, actionable knowledge from large datasets. It is an application-specific issue. Various techniques have been developed to solve different problems, such as mining association rules, classification, clustering, sequential patterns, partial periodic patterns, and path traversal patterns on the World Wide Web. Data mining tools are used to analyze data stored in databases or data warehouses or data mart or operational data stores [Han & Kamber (2001)]. Data mining produces startling results that will entirely transform the businesses.