What is data mining?
Data mining is a quantitative process where hidden trends and patterns in databases are pulled by an analyst to generate insights. This type of analysis is becoming more commonplace today, as big data continues to grow. In the field of marketing research it is often an easy first step and extremely valuable process for an organization.
Virtually all companies both small and large have multiple and sometimes countless databases. A simple example of this is a customer database which might include names of customers, emails, phone numbers, ZIP Codes, purchasing habits, dates of purchases, times of purchase, etc. Although your sales managers may view this type of database as simply a log, data mining can turn it into a wealth of insights.
What if you were able to return to your sales managers after mining the data to provide them with the following takeaways:
- 78% of purchasers occur on Thursday and Friday between 7:00 PM and 11:00 PM. The organization may want to rethink about the new site maintenance schedule beginning next Thursday.
- 71% of purchasers are female, aged 35 to 49. In the past year only 4% of purchasers were females under the age of 35. All of those young female targeted advertisements upcoming next month may be a waste of dollars, as your customer base largely scales older.
- Only 3% of customers purchased replacement parts for your machine after purchasing the product with your company, even though the life of the machine is 15 years. Maybe customers go online elsewhere or find a less expensive place to purchase those same parts? You might want to get together with your sales managers to discuss how you can boost these sales.
Drive Research is a market research firm in Buffalo, NY. We specialize in market research services such as customer experience, online surveys, and focus groups. Contact us at firstname.lastname@example.org or by calling 315-303-2040.