Your consumer base is in a lot of ways like your long-time spouse; you think you know her a 100% and then you suddenly discover she’s an excellent business adviser and you had no idea about it for the past 20 years! Jubilant, you rejoice your decision to open up to her about your financial woes and wonder why you didn’t do it before. But when you think about it, you start to see there have been signs a plenty in the past that have somehow managed to sneak past your otherwise keen eyes. Oh, how you wish you had seen this before (the bankruptcy)! Nevertheless, you’re just a human being who’s able to gather, process and analyze only so much information and so you move on contemplating what could’ve been. However, in the world of advanced computation, you really can discover, understand and act on these hidden sides to your consumer-spouse through a little tool commonly known as Data mining.
While explaining the exact process of Data mining may be a little arduous, it is in essence the process of analyzing huge amounts of data to establish patterns and algorithms between variables that were previously thought unrelated. From what the office hours have to say about the number of likes on your latest post on Facebook to what the weather conditions have to do with the kind of games the typical 16-year old wants to play, Data mining accumulates and works out the correlation between thousands and millions of statistical occurrences and gives you an opportunity to capitalize on them. It is used by almost all major corporations across the globe to help determine customer demand and innovate, re-innovate and market accordingly. For example, Walmart, the US retail giant, processes over 20 million point-of-sale transactions every day. This information is stored in a centralized database, but would be useless if left without analyzing. If Walmart analyzed their point-of-sales data with data mining techniques they would be able to determine sales trends, develop marketing campaigns, and more accurately predict customer loyalty.
Data mining is an essential tool for the digitalized, scientific world of business we live in today. Whether it be analyzing your competitor’s operational strategies or your direct consumer’s mood-based expenditure, Data mining can be a valuable asset in your comprehensive understanding of consumer behavior. If only there was something as equally effective to help you understand your real-life spouse and why she has been angry all day.
This article was brought into being by Hassan Munhamanna, an aspiring young mind in the social and digital marketing space in Bangladesh.