Data mining offers benefits to a variety of industries including marketing, banking, medicine, healthcare, transportation, and insurance. Data mining methods find application in a variety of research areas, such as mathematics, genetics, marketing, and cybergenetics.
So, What is Data Mining?
Data mining is the drawing out of hidden predictive data from huge databases. It entails utilizing data mining software, human creativity, and sound methodology to discover relationships, dependencies, patterns, and anomalies. It incorporates various technical approaches including clustering, studying classification rules, data summarization, locating dependency networks, detecting anomalies, and evaluating changes. The tools used for data mining foretell future behaviors and trends, enabling business firms to make wise, proactive decisions.
The Advantages of Data Mining
Here are some of the benefits of data mining:
- Helps to unearth facts about customers from your database, which you previously didn’t know about, including purchasing behavior.
- Lends automation benefits to existing hardware and software.
- Crediting/Banking: helpful to financial institutions in such areas as loan information and credit reporting.
- Research: makes the process of data analysis faster.
- Law enforcement: can assist law enforcers with keying out criminal suspects and taking them into custody, by looking into trends in various behavior patterns.
- Marketing: helps to foretell the products which customers would like to buy.
- Transportation: to evaluate loading patterns.
- Medicine: to discover effective medical therapies for diverse illnesses.
- Insurance: to make out fraudulent behavior.
- Enhances efficiency and saves money.
Towards Achieving High Levels of Customer Service
It can thus be seen that the benefits of data mining are many. If one has the right data mining strategy, he/she can achieve high levels of customer service.