What is Data Mining and How Can Your Company Use It?
At one point, a business could be successful simply by producing high-quality products or services. Due to major advancements in technology, the variety of products and services available along with the means by which customers discover and interact with brands has changed. While technology has contributed to globalization and a more competitive landscape for businesses, it has also enabled businesses to gather unparalleled amounts of data on their customers.
Enter the big data and data mining.
What is Big Data and Data Mining?
According to Gartner’s IT glossary:
- Big data is “high-volume, high-velocity and/or high-variety information assets that demand cost-effective, innovative forms of information processing that enable enhanced insight, decision making, and process automation.”
- Data mining is “The process of discovering meaningful correlations, patterns, and trends by sifting through large amounts of data stored in repositories.”
Why is Data Mining Important?
Data Mining Reveals Critical Insight Into the Customer Journey
Research on the journey of the buyer, from awareness to purchase, was once based on case studies or surveys. That is, only if the business possessed the resources to conduct this sort of comprehensive research. In the past, many smaller businesses attempted to identify what their customers wanted based on intuition.
Today, customer experience is king and data mining has completely revolutionized the insight that businesses have on their customers. Successful businesses are now able to utilize data mining techniques to:
- Understand customer values
- Monitor customer behavior
- Analyze customer motivations
Data Mining and Mobile
The rise of big data and data mining is largely correlated with the rise of mobile device usage. David Edelman, global co-leader of digital marketing and sales at McKinsey & Company described the importance of mobile in an interview with Google when he described, “consumers now have the power to get information or get something done immediately. Because people have a computer in their hands at any given second, the individual moment they’re in is now the most important part of the customer journey.”
Whether it is through using an app, browsing online, buying online, or a posting on Facebook, customers leave what many have been calling ‘digital breadcrumbs’ through their mobile actions. These online behaviors combined create the customer’s digital character.
Some of these behaviors may seem minuscule, but the best part is:
All of this data can be leveraged.
Source: Cisco VNI Mobile, 2016
Mobile behavior has become one of the most pivotal sources of big data. Several statistics from Cisco’s Global Mobile Data Traffic Forecast Update, 2015–2020 illustrate the magnitude of big data gathered from user behavior on mobile devices:
- Mobile data traffic has grown 4,000-fold over the past ten years and almost 400-million-fold over the past 15 years.
- Monthly global mobile data traffic will be 30.6 exabytes by 2020.
- The number of mobile-connected devices per capita will reach 1.5 by 2020.
How 4ME4WE Allows You to Leverage Big Data
Big data has become one of the most powerful tools that businesses can utilize to bring in new customers and enhance customer satisfaction. Many businesses do not know where to start in gathering information, or what the next step is when they have crucial customer information right at their fingertips.
4ME4WE allows you to gain insight into where your customers shop, how your customers behave on social media, and most importantly, the causes they support in real time. Here are a few ways that you can utilize this data to gain a competitive advantage:
Segment Your Market Based on Key Demographic and Social Insights
With information gathered at registration on the 4ME4WE app, you will be able to break down key demographic characteristics of your customers that you may not have had insight into before. Some of these are basic metrics including age, gender, and location. 4ME4WE allows you to segment your database instead of viewing your customers as one large audience, eliminating the guesswork in your marketing efforts.
In addition, the integration with social media on the 4ME4WE platform allows you to gain detailed insight into customer interests. It is important to use the insight into the personal tastes and preferences of your customers in crafting compelling messages that keep customers engaged and build long-term loyalty.
Cross Market to Customers Based on Key Purchase Behaviors.
4ME4WE allows you to analyze customer purchasing patterns by automatically gathering data as customers scan their receipts using the 4ME4WE app. By gaining critical insight into both your customer’s purchasing patterns at your business, how your customers behave at other businesses, and the causes / charities they support, you will be able to identify trends and take advantage of opportunities to increase point of purchase sales.
It’s time to start using big data and data mining techniques to understand your customers on a deeper level. 4ME4WE allows you to uncover what your customers are interested in, what causes they care about, where they are spending their disposable income, and more. When you invest in gaining quantifiable insight into your customer values and leverage this information in a purposeful way to enhance the customer journey, your business will be unstoppable.
Register now to become a 4ME4WE brand today.