Data mining software unearths correlations in large datasets. It quickly and systematically combs through big data, using artificial intelligence, pattern recognition, traditional statistics, and graphics to present hidden relationships, patterns, and correlations between measurable variables in a data pool. These patterns are then converted into a format that can be understood by data specialists. Companies can use these insights to improve their customer experience (CX)
Data mining’s ideal end result is the creation of individualised customer profiles. Using these profiles, companies can more effectively target current and potential customers through advertising and promotions, create niche products that will capture greater amounts of revenue, and increase customers’ loyalty and wallet share.
The term “data mining” is borrowed from the business intelligence (BI) world. At the start of the computer age, companies began storing information in data warehouses – without any easy way to extract and utilise the data. Algorithms were eventually developed to dig through the data. Using improving computing power, companies began to discover relationships that weren’t immediately obvious to analysts. Data mining had its beginning here.
Data mining is often confused with data analysis. But whereas data analysis starts with a human-formed hypothesis and predetermined variables, data mining begins with a computer program looking for relationships between all data points. Marketing research is also often correlated with data mining. Marketing research uses data from surveys, focus groups and other sources to evaluate which factors influence buying decisions. It can be done as part of data mining or through data analysis. Data can and should cycle through all three processes in order for data analysts to create actionable insights.
Data mining allows researchers to detect general trends. Knowledge of these trends helps companies to optimise their products, services, and processes to make customers happier, reduce client churn, increase revenue and brand loyalty.
Since the dawn of the digital age, data has been accumulating. Traditionally, data sets have been small and manageable. In 1992 for example, only 100 GB of data were produced daily. But that is no longer the case. As technology has advanced, the amount of data created has increased exponentially. In 2013 alone, 28,875 GB of data were created every second. By 2018 that number is projected to increase to 50,000 GB per second.
Many companies spend money collecting big data, but some don’t effectively apply what it teaches them to increase revenue. In order to remain competitive, companies can no longer ignore the growing piles of data accumulating on their hard drives. It’s time to upgrade.
At MaritzCX, we believe that big data can and should be utilised. Data mining needs to be simple, intuitive, concise, and efficient – yet organic enough to evolve with quick changing industries. Our patented data mining solution, Spotlight, built specifically for CX, can process over a trigintillion data combinations and save 1000 analyst hours with the click of mouse. The business story behind what your customers are saying will be clear, empowering you to decrease costs and increase revenue. You’ll be able to understand complicated interactions at all feedback points. Complex customer data will translate into actionable intelligence. What used to take months will take minutes. And the best part – anyone can use it.