Data mining is more than just collecting numbers and figures. Data mining is a powerful tool that uncovers patterns and trends so you can make better marketing strategies for your company.
There are 5 main data mining techniques that will improve the foundation of your marketing strategies and help you garner continuous success for your business:
Association For Retail
One of the most well-known data mining techniques is Association. It relates to consumer behaviours where transactions are examined to determine a specific buying pattern. Retailers find out what people buy, so they know how to better market their products. For example, a pattern occurs where people will buy chocolate as well as a packet of potato chips. Therefore stores may use this information and put those two items together on display for better sales. You can use it for your own business to determine what products sell well for better profit.
Classification For Investments
Classification is a diverse predictive technique that categorises and labels data. It’s used to determine a future outcome based on previous results collected. For example, a company wants to know if a certain client is a risky or profitable investment. Based on previous client profiles, classification will show whether or not it’s safe to go ahead with the deal. Classification will help you make greater deals through better-informed decisions.
Clustering For Organisation
Similar to classification, clustering categorises data. However, clustering uses this labelled data differently. Instead of placing the same kind of information together to predict a future outcome, it collects a variety of data for better organisation. Like a library puts the same kind of books in a Romance or Sci Fi section, clustering will collect your data, detect similarities, and put them into recognisable groups. When data gets overwhelming clustering helps you keep things organised.
Decision Tree For Risk Management
A decision tree is a useful data mining tool for better business decisions such as project risk management. All you have to do is start with a question, and a decision tree will lay out the possible factors related to help you make the right move. For example, you notice a trend in your industry, like an increase in sales for a type of product. You can either continue what you’re currently doing or try out this current trend. If you follow one path, a certain outcome will occur and so on. Decision trees help you keep track of outcomes that have the potential to make or break your business.
Prediction For Sales
Prediction is another versatile data mining technique that used collected data to determine future outcomes. For many businesses prediction is used to identify sales and profit results. All businesses can benefit from predictive data mining. Knowing the possible outcome of sales decisions will help you stay on top of the competition and boost profit for your business.
Want to learn more about data mining and how you can use it to increase your business? Get in touch with one of our data mining experts today. We’ll help you make the most out of your data at IT Consulting Company.