HOW TO OPTIMIZE SALES AND DISCOVER
Data mining software analyzes relationships and patterns in stored transactional data. It is primarily used today by companies with a strong consumer focus – retail, financial, communications, and marketing organizations.
It enables these companies to determine relationships among internal factors such as price and product positioning and external factors such as competition and customer demographics. It enables companies to determine the impact of various factors on sales, customer satisfaction, and corporate profits.
With data mining, a retailer could use point-of-sale records of customer purchases to send targeted promotions based on an individual’s purchase history. A credit card company can include product inserts into its mailings based on an analysis of the customer’s purchases. By mining demographic data from comment or warranty cards, a company could develop products and promotions to appeal to specific customer segments. The possibilities are endless – and can be extremely profitable.