Data Mining and Your e Comm Business

By Darla Rooks

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The dictionary states that data mining is the practice of examining large databases in order to generate new information.  Data mining is a form of data analytics. That when used properly, your business can stay ahead with trends and needs from customers.

 Big companies such as Facebook use data mining to make suggestions to you. They look at your given data and then show you suggestions that you may like such as, certain upcoming events, news tailored for you, most Facebook ads are geared toward your preferences. Virginia Matteo wrote an interesting article called Facebook and Data Mining at Turbo Future that explains the use of onsite and offsite data.

Onsite data:

• Everything you share on Facebook, including your account details, the posts you publish, the location and dates of photos, the ways you use Facebook (such as what type of content you engage with, how frequently, who you communicate with).
• Everything others publish about you, including photos, messages, and posts.
• The groups and people you are connected with, including data on how you interact with them and contact information (for instance, an address book) you upload.
• Payments information, such as what type of purchase or donation you made, your card information (card number, card security code and so on) as well as contact, billing, and shipping details

Offsite data:

• All pieces of information about your device, such as operating system, hardware version, device settings, file and software names and types, battery and signal strength, device identifiers, specific locations gathered via GPS, Bluetooth or WiFi, the name of your mobile operator or ISP, browser type, language and time zone, mobile phone number and IP address.
• Information from third-party websites and apps associated with Facebook, such as games on Facebook. The information includes what websites and apps you visit.
• Information supplied by third-party partners, such as advertisers or data brokers.
• Information supplied by other companies owned by Facebook.

A Few Ways Data Mining Can Help

Prediction- This is a very valuable technique that will help predict the future such as a spike in sales at a certain time of the year or understanding trends so that you can adjust to met the demands of your customer’s needs.

Tracking -   To be effective there are a few ways to harness this data such as tracking.  This is basic technique of gathering data that can give the highs and lows of certain products that may sell more around the holidays or how much traffic you have coming into your website.

Market Segmentation - This is a must for marketing. It helps marketers to know how and who to target with different combinations of products, offers, and pricing. Market segmentation can also help predict customers who are more loyal and are more likely to buy your products.

Product Planning - This data is used to show what items are selling and which product is moving slow. You can adjust and change your inventory for the best items.

Basket Analysis - This is great for brick and mortar stores to look at product customers bought that will help create a better lay out. Online stores especially Amazon  use this to suggest related products.

Many successful companies use data mining such as Netflix, Amazon, McDonald’s, Macy’s, Starbucks, and Walmart.  All of these companies use data mining in different ways to make their business better. Ask yourself would this make your business better by mining and utilizing data from your website or store? So many business owners do not take advantage of this information that help predict better product, increase sales, and loyal customers. These are just a few ways to use your data to improve and grow your business. Data mining is not a new concept. It has been around for many years by many different companies. Banks use data mining to determine if a customer is a risk and for detecting fraudulent transactions.   It is a great tool for customer satisfaction, improve conversions, and create more effective target campaigns.