Lately, there’s a lot of talk doing the rounds about Data Mining and Knowledge Discovery in the B2B industry.
What is all the excitement about anyway?
The fact of the matter is that there’s a lot of data being collected and organized on a regular basis by most organizations. Data being the most important asset of a company requires certain computational theories and tools to be converted into usable information. It is this requirement that has led to the evolution of knowledge discovery in the database. Data Mining is a process used by companies to convert raw data into meaningful information. By using software to look for order in a large quantity of data, businesses can know more about their customers and come up with the most productive marketing plan which is most economical for the enterprise. Data mining relies on effective data collection and storage along with computer processing. Data mining services are also known as Knowledge Discovery in Database (KDD).Data mining is the process of scrutinizing B2B Company Data from a different aspect and outlines it into useful information – information that can be used to increase revenue, cut costs, or both. Data mining software is one of a number of analytical tools for examining B2B Company Data. It allows users to examine data from many different aspect or angles, classify it, and outlines the relationships with business aspects. Practically, data mining is the process of finding interrelationship or patterns dozens of fields in large connected databases. Image reference: http://searchsqlserver.techtarget.com/definition/data-mining
Why is data mining important?
Data mining is basically used by companies who focus on strong consumer communication, retail, and marketing. It allows these companies to decide the relationship among various “internal” factors like product positioning, price, or staff skills, and “external” factors such as economic standards, demography of customers. And, it allows them to determine the influence on sales, customer satisfaction, and corporate profits. Ultimately, it allows them to get deeper to access information to view detail transactional B2B contact data. With data mining, a retailer can keep point-of-sale records of the purchase made by the customer in order to send targeted promotions on the basis of individual’s history of purchase. By mining demographic data from assurance card, the retailer can develop products and promotions to please specific customer group. For example, American Express suggests various products to its cardholders on the basis of analyzing their monthly expenditures.
How does data mining work?
As large scale information technology has been developing distinct transactions and well-organised systems, data mining extends the link between the two. Data mining software examines the relationship and patterns in preserved B2B Contact Data transaction based on open-ended user uncertainties. Several types of analytical software are accessible: statistical, machine learning and neural networks. Basically, the relationships are sought on the basis of the below four types:
- Classes: stored B2B Contact Data is used as a base to discover data in pre-decided groups.
For example, A chain of the restaurant could mine data of customers purchase to ascertain when customer usually visits and what they typically order. This information can be used as a base to increase the crowd in the restaurant by having daily specials in the menu.
- Clusters: B2B Contact Data items are categorized according to analytical relationships or consumer priorities.
For example, Data can be extracted to discover market segregations or consumer rapport.
- Associations: Data can be extracted to know associations.
- Sequential Patterns: Data is usually extracted to foresee behavioral patterns and trends.
Conclusively, Data Mining is an essential tool to obtain actionable information as well as to forecast trends, thus it helps in smarter decision making and designing of strategic multichannel marketing campaigns to reach the target market segment.