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Data Mining

In order to get the most out of your customer database, you need to commit yourself to continual mining of your database.

If an organization maintains a customer database, it follows that whenever there is a customer transaction, the data is captured and stored in the computerized database. So, the customer database is constantly being updated in response to customer activity.

In such a scenario, it is only logical that data mining should also be a regular activity because your customer database is dynamic and constantly changing.

The process of database management starts with firstly building a sizeable database of customers, by inputting customer transaction details. The next critical issue is the effective utilization of that database. This is where the concept of data mining comes in. Data mining is a computerized process of sifting through a huge volume of customer data to identify different customer segments and patterns of buying behaviour within those segments.

Data mining is an essential and ongoing activity that helps organizations in picking up important insights into the buying habits of their customer. The key lies in generating information that is meaningful and useful for an organization and more importantly, updating this information regularly.

Advantages of regular data mining
  • An ongoing analysis of your customer database will help you in zeroing in on the right customer segments for sales strategies such as cross selling and up-selling, for festival offers, for special packages and also for new product launches. If you using data that is 6 months old or one year old, you run the risk of overlooking recent customers who may be relevant for a particular promotional offer.

  • Regular data mining also helps in picking up any changes in the purchase patterns of your regular customers.

  • Regular data mining helps in updating your list of high value customers and including these profitable customers for relevant marketing programs
Data mining therefore serves as a proactive tool to garner direction for a more effective and focused marketing strategy.

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