From sales forecasting to database marketing and basket analysis, find out how data mining can be used in seven unique ways.
Do you have loads of good customer data, but are not doing anything with it? Customer data, if used correctly can increase your customer loyalty, reduce your client churn and unlock the hidden profitability of your enterprise. Would you like to know how data mining can help you use your data effectively? Here are some practical ways that you can use to get the most out of your data.
- Basket analysis
Also known as affinity analysis, you can find out what your customers have purchased from your website. Such data can help you improve your layout and even list out related products that customers might be interested in. This type of analysis can enable you to predict future customer behaviours from past performance. You will also get to know how credit cards are used, the patterns of telephone use and identification of fraud insurance claims.
- Sales forecasting
If you know what your customers bought, you can predict what they will buy again. You can evaluate effective strategies and figure out what complimentary products to sell. The data can be used to look at a number of customers in your market and predict how many consumers will actually buy. Customer data can also help you project your cash flow in a better manner. You can accordingly plan the right amount of capital that you would require to sail over difficult situations.
- .Database marketing
By examining patterns of customer purchases and looking at demographics and psychographics, you will be able to create products that will sell themselves. Database marketing starts with collecting such information and then targeting your customers based on this intelligence. Such data can help you run contests, discounts and promotions and avail more customers for your store. Email newsletters and twitter accounts are also great ways to get in touch with your customers.
- Merchandise planning
Merchandise planning is great for offline and online companies. Data can help you evaluate the amount of merchandise that is needed or determine better stocking options and inventory warehousing. Customer data can also help you select products, balance your stock, choose the best price and get rid of obsolete inventory. Merchandise planning can help you increase customer experiences and avoid poor performance.
- Market segmentation
A great benefit of data mining is market segmentation. From your data, you can categorize your market into segments like gender, age, occupation and income. This is great for almost everything, be it email marketing campaigns or SEO strategies. You will also be able to better understand your competition, and identify aspects that can be used to target your customers.
- Customer loyalty
With price wars between your competitors, customers will try to buy from the competitors that offer the lowest price. Data mining can be effectively used to gain customer loyalty. You can improve your acquisition costs, by finding out why your customers are bailing out. Finding out ways to improve product development, future growth and customer engagement are some of the ways to improve customer loyalty.
- Product production
Do you want to create customized product for different market segments? By analysing data from your customers, you can create truly innovative products that is unique in nature, serves a broad market and fulfil the obvious needs of your customers.
Find out more about how data mining can be used for your business.
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