Data Mining Applications and Uses of Data Mining in Business

Information is at the heart of every business. How your company accesses it and how its used are key components of a successful enterprise. Data mining is one way to gather information and there are as many businesses in need of this process as there are data mining applications. Put simply, data mining is the process of learning through the gathering of large amounts of data and applying the learned information in a new way. There can be several exciting ways this process can be applied, we’ll take a look in this article at the top five industries that need to apply this process for greater success.

Top 5 Data Mining Applications

Retail Customer Relationship Management
Relationship management is about retaining customer loyalty. Data mining can provide helpful analytics that focuses on what the customer is wanting from their experience with your company. This is the kind of data mining in business that can make the difference for a company struggling to retain clients. If your business is in the retail industry, consider data mining to help retain the often fickle customer base.

Crime Prevention
Data mining can be useful for industries that lie outside of the conventional businesses you may think of. In this application, the analysis can help spot trends in types of crime, areas of crime, level of severity, etc.

Finance
This may be the industry most people think of when they consider data mining. Much of this industry is built around analytics and how they are applied to successfully run an organization.
We mention it here because there are still segments of this industry that don’t apply data mining tools or don’t apply them the right way. The collection of data is important, but the collection and application of the right type of data are even more important.

Research
Leaving this as a broad industry category helps capture several different types of research. You could be needing to mine historical records, medical results, or sales trends. If your industry fits into one of these categories, it is very likely you will benefit from data mining. You may also have a company that just does research for one of these segments, that would benefit from data mining use as well.

Telecommunications

There are nearly endless applications within the telecom industry where data mining could help. Who hasn’t experienced frustration with the coverage their phone provides? Here are a few ways data mining can help this industry:

Analyzing coverage areas and dead zones
Tracking frequency of use in a particular region
Tracking call length
Tracking data use per phone or per contract (several phones)
Analyzing customer satisfaction by region, state, etc.

Few people would believe the telecom industry has everything figured out. Data mining efforts can improve many areas of this industry that people would agree are still lacking.

Importance of Data Mining in Your Industry

Far from providing an all-inclusive list for possible data mining applications, the industries we’ve listed are just the beginning. Hopefully, by reading through these you’ve recognized your own company or you’ve been alerted to the possibilities and realize something we didn’t cover. Whatever the case, we’d love to talk to you more about data mining in business and how it can help you succeed. Contact us today for more information on how to get started!