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.