Today, the success of any business largely lies in its ability to search through and process data. In the world of business, it is widely believed that this task is vital, since digital marketing could hardly work without the necessary data which later turns into information, then knowledge. This in turns allows for the creation and application of any sales strategy – which is where data mining comes into play.
What is data mining?
Data mining involves discovering patterns in large sets of data. Using methods such as statistics, database systems and machine learning, data mining enables you to use technology to explore large databases, whether automatically, semi-automatically or even manually.
Whatever processes or data you choose to use, it is the application of these powerful statistical techniques that extract trends and patterns.
Companies are constantly asking questions about their customers, such as:
• How can I better know my customers?
• How can I better know and understand the market?
• What tools can I implement to successfully decipher trends?
Traditionally, companies answered these questions through market research, but gradually, more and more effective resources are making themselves available, such as data mining.
How did data mining emerge?
Data mining emerged as a result of trying to understand all of the information available to us. Since the beginning, people have used algorithms, mathematical models and statistical techniques to collect and analyse data. One of the most popular and useful technologies in this field is the automation of processes, which goes hand in hand with artificial intelligence.
For instance, a platform such as Facebook is extremely useful for companies that need to know and understand their specific target audience, such as their buying habits/trends and positive and negative opinions about particular brands, products or services, amongst other things.
Some of the most sophisticated and advanced data mining methods include sales reports, web analytics and metrics and loyalty programmes. Other methods include monitoring systems on social networks, forums and websites.
Without data mining, it would be extremely difficult to understand the reasons why a service is failing, or the real reasons why a company’s sales increase or decrease at a given time. It would also be difficult to implement clear, effective strategies that will produce desired results.
The benefits of data mining
Data mining allows us to find repetitive patterns or trends. Through these patterns or trends, we can evaluate the behaviour of the information flow in a given context.
So many sectors and businesses can be mined using these techniques. For instance it can be applied to advertising, marketing, e-commerce initiatives, healthcare processes, hospitality and supply chain processes. Any organisation that has data and processes can be analysed with data mining, and the results allow us to extract actionable information from these resources, fine tune business processes, increase efficiency and increase productivity. Data mining essentially seeks to understand the present and thus enable us to make executive decisions that will positively impact future events.
Data mining can be translated into useful reports in order to generate more specific decision-making in a business. It gives clear direction to marketing, showing possibilities to follow and improving the delivery of services. All of this saves time while reducing operating costs.
Interested in using data mining to benefit your business?
If you have reached a point where you realise that change is important for your business, then get in touch with our team of specialists at 8 Ways Media. We can help you to better understand and implement effective data mining techniques that will help you to achieve more notable, long-term success in your business.