5 Ways Data Mining Can Help Your Business
Data mining, aka knowledge or data discovery, is nothing new. It has been around for several decades now, and it’s a method used in collecting and analyzing data for various perspectives to summarize into useful information. And with this useful tool, companies can discover better ways to cut costs and increase revenue.
From time to time, an analysis from different angles need to be taken. This is important so that companies can stay abreast of consumers’ needs and trends. Data mining is possible with companies using powerful computers that shift through tons of scanner data to analyze market research reports for some time to come. In some case, this can happen for years. And furthermore, continuous innovations in disk storage, statistical software, and computer processing power are drastically improving the analysis accuracy while reducing the cost.
Having said all of this, it’s easy to see why data mining is beneficial for businesses. Below, QASymphony shares five ways that data mining can help businesses:
Database marketing –
By looking at the psychographics and the demographics of customers and examining the purchasing patterns of them in order to build profiles, you will know how to make products that will sell on their own. And it’s imperative to continually retrieve information to obtain the value of databases because the information is continually evolving and growing.
Sales Forecasting –
The data will show how customers buy in order to try to predict when and how they will buy again. This information will also show how many customers in the market are buying in order to try to predict their buying habits.
Merchandise Planning –
With the data showing what sell and what doesn’t as much, business owners will know what to buy and how much to buy because they will realize what products customers are buying. They will know how to balance the inventory and determine the best price for products.
Customer Loyalty –
Information can also be retrieved from employees, Facebook, and an app, called FaceOff, to gain strategies on how to gain return customers. This can be done by asking employees for ideas on improving product development, customer engagement, and future growth. Customer cluster is a technique used in Facebook to generate ideas to satisfy customers, improve the brand, and increasing loyalty. And with FaceOff, companies can discover ideas from customers, submit the ideas on FaceOff, and then the ideas can be voted on by people who may be interested.
Market Segmentation –
Market segmentation is great for different reason. For one, you will be able to have segments according to gender, occupation, income, and age, for instance. And this works well for SEO strategies and marketing campaigns. Secondly, a better understanding of your competition as well as finding the identity of more competition are both possible with segmentation. Knowing this information will help you to compete more effectively. Also, this tools can improve the conversion rates when focusing promotions in a highly interested and tight market. And lastly, with gaining more understanding of the competition, you can customize promotions and products that will satisfy the needs of the audience a lot more than with a broad and generic promotion.
The more data mining retrieved from customers, the more value is gained to deliver better results for your customers. This, in turn, will help generate more revenue. Data mining has been around for several decades. Its purpose is for collecting and analyzing data for various perspectives to summarize into useful information.
With data mining, companies can stay abreast of consumers’ needs and trends. And furthermore, data mining is possible by companies using powerful computers that shift through tons of scanner data. This is used to analyze market research reports for some time to come, even years. With data mining, you will know how to make products to sell themselves by looking at the psychographics and the demographics of customers and examining the purchasing patterns of them to build profiles.
For sales forecasting to marketing segmentation, data mining is not an option, but it’s mandatory to sustain and prosper in business. When taking advantage of this skill, you will reduce costs, and you don’t have to worry about customers going elsewhere.
Kalyan Banga193 Posts
I am Kalyan Banga, a Post Graduate in Business Analytics from Indian Institute of Management (IIM) Calcutta, a premier management institute, ranked best B-School in Asia in FT Masters management global rankings. I have spent 6 years in field of Analytics.