Modern businesses are beginning to understand and harness the great opportunities offered by the capture and extraction of the information from their business data to drive revenue streams and open new possibilities.
Data Mining is becoming an essential solution for businesses in any competitive area. It can be a source of innovation in almost every sector, from health, to finance, and from property to marketing. In a variety of cases this type of data research is the best way to improve business services with minimum investment cost. The most successful companies are usually those who understand well their environment.
Fact: in the retail sector, implementing data mining in sales, ordering and market profiling can improve profits by 60%.
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The potential for a significant increase in profits and the knowledge about the business opportunities are the key driving factors for most of the companies using Data Mining services. However according to a forecast made by the McKinsey institute this situation is about to change dramatically. To stay competitive all businesses will have to carefully review their use of data analysis and interpretation. Data mining will be essential to keep up with those around you. Productivity, growth, innovation and consumer surplus as a result of Data Mining will mean those companies who did not adopt the technology in their business practice will be outperformed and out of the business very soon.
If a business is struggling financially, it might be tempted to stop innovating and becoming more competitive often that includes reducing spending on advertising and development completely. In fact, it may be better off re-targeting its resources and focusing all the efforts on the best course of action. It is essential to understand exactly who your customers are and target them specifically by helping them find key facts about your product or service offering, sales and customers. The information can come from many sources. It can come from your website traffic, from CRM system, sales invoices or questionnaires. Once collected it should be analysed and included in your business strategy.
We are specialists in bespoke online tools that can capture business knowledge. We can help you find more clients, sales by using client data analysis.
The steps required to make Data Mining work for you and your business:
Examples of the areas where Data Mining can be used:
- Sales data analysis - If you sell anything you know how important it is to know how to promote your products. As there are patterns in sales, it is possible to find out which products people buy together. You can therefore reduce unsuccessful promotions, find out what customers need and sell more products.
- Churn analysis - There are situations when even a loyal customer could change any of its business partners. Data Mining churn analysis could help you identify these customers before they go to your competitors. Keep your customers with you and don't lose their loyalty.
- Customer profiling - According to the Pareto Principle only 20% of your customers generate 80% of your income. This Data Mining analysis will help you identify key customers. You could prepare special offers for them. Moreover, you could divide your customers into several groups according to their age or interests.
- Employee profiling - The success of every company lies in the hands of its personnel. By analysing personnel data you can find a bright star or again a weak link that might decrease overall performance. As a result of this Data Mining analysis you could give extra training to employees with low performance and reward or promote those who do best for you.
- Message segregation - When you receive a vast number of messages it is important to segregate them to right branches of the company. With automatic segregation mechanism all incoming messages will be sent to the right employees. It will reduce the number of messages, which have to be resent and any time wasted by manual segregation.
- Financial performance analysis - Have you wondered why financial crises happen? The answer is very simple. Without good financial knowledge, investment becomes an emotional and often irrational process, so when the economy validates the market, a crisis starts. Therefore, you need a source of automatic financial performance Data Mining analysis to evaluate companies' financial standings.
- Weblog analysis - Have you invested in an advanced website, but find that not many users read it? Maybe they cannot find the information they want in the right place? Log analysis of website usage will identify patterns of use and help create a proper website structure. Sections of websites can then be generated more naturally or suggested links could be presented to the user.