Data mining is the process of extracting relevant data from both online and offline resources to set up a data base for businesses. But did you know that data mining ensures marketers in many ways that range from sales forecasting to database marketing and basket analysis among others.
Customer data when used correctly can go a long way in increasing customer loyalty and goodwill. Here are some interesting and practical ways that you can use to get the most out of your data that has been collected.
Customer data can be utilized to undertake basket analysis to find out what your customers have purchased from your website. Such data will help you to manage your inventory more efficiently and to list out related products that customers might be interested in. It is a smart way to analyze the purchase pattern of the buyers and to predict future customer behavior from their past purchase pattern.
Data mining ensures you to examine the customer purchase patterns as per demographics and age factors and to stock up hot selling products. Data base marketing involves collecting such information and then targeting your customers based on this intelligence. This data can also be used to run promotional contests and special offer drives to attract more customers to your stores. This data base details can also be made use during email campaigns.
If you know the purchase pulse of the customers you can easily predict what your customers will buy in future as well, which in turn will enable you to evaluate effective strategies to make sells and add complimentary products to the main product line. The data can be used to estimate the number of future buyers, project your cash flow and plan the right budget.
An accurate stock planning will go a long way in keeping the inventory in good shape. Customer data can also help you select products, choose the best price and get rid of obsolete inventory. Stock planning will enhance the shopping experience of the customers and will encourage them to come back for more. There is nothing bad for a shopper like finding empty shelves of products that he wanted and a surplus of obsolete items that are not in demand. Merchandise planning plays an important role in making your stores popular and will even set off word of mouth publicity for your business.
Another advantage of data mining and data entry is market segmentation as you can easily divide your market depending on factors like gender, age, occupation and income, which in turn will come handy while undertaking email marketing campaigns or Social media promotions to reach out to your target customers. The trump card for any successful business is to know their target audience clearly. Once the target audience is clearly etched out, you can easily stock up products that match the needs of these customers.
Fixing the best price
Data mining ensures you to fix the best price for your products to stand ahead of the competition and to gain customer loyalty. Customers will have an affinity to drift towards businesses that offer the lowest price and data mining can be effectively used to gain customer loyalty. By fine tuning your acquisition costs, you can retain the interests of the shoppers. Some of the other factors that enhance customer loyalty include product development and customer engagement among others which will not just keep the existing customers in the fold but will bring new clients too.
New Product launch
Data mining ensures enough clues on the popular product trends and demand for custom products for different market segments? By analyzing data from your customers, you can come up with unique products that will complement the need of your customers and will give your businesses a futuristic tag.