Data Mining Examples You Can Actually Understand
Data mining is a tool that takes a lot of seemingly unrelated information and organizes it according to patterns. Governments and Retailers alike have collected data to learn more about their target audience and make fact-based decisions. The tricky part comes when it’s time to put the organized information to use. This could be the difference makers on whether an organization survives or thrives. Check out these data mining examples for insight on how it can help your business.
Data Mining Examples In Retail
This is the most popular example of data mining today. Retailers tailor their store layouts based on information collected about purchasing habits. Online businesses routinely recommend other items based on your shopping cart. This is purchasing habit data at work. Done accurately, tailored content can improve customer loyalty. Higher customer loyalty leads to higher revenues and an improved place in the market. Target is one major retailer that has interpreted data for sales benefits.
Information on shopping habits was compiled to send crib catalogs to expecting mothers. They got so good at it they even knew of a teen’s pregnancy before she revealed it to her father. Customers saw this as more creepy than helpful so Target altered the strategy. Utility companies and cell phone service providers also use data mining. Customer service data predicts when a customer is about to change to the competition. These companies then offer incentives to keep customer loyalty.
Researching the Research
Data analysis tools can also reveal any holes in the research. They can pinpoint occurrences where information repeats or trends in unexpected ways. Analysis of how data is collected ensures that businesses have the most accurate information. It can also inform whether the research parameters need to be altered. If there is an area of a market that has been underserved by an industry, applied data mining can exploit it. This can help to skyrocket your business ahead of its competitors when properly used.
Putting It All Together
Data mining examples like these show how competitive advantage is created. Businesses use the info they collect in a way to constantly stay aware of what is needed to grow. Systems created specifically for your business to ensure you collect the most accurate information. When your information is more accurate you can make better decisions. Contact us today for information on gaining your competitive edge.