The companies with clusters of customer database require a tool to refine that data and highlight only the one that is relevant to them. Data mining process is the best tool to highlight the information that is relevant to one’s requirement. There is a possibility of drawing a fine line of classification between closely related categories of information using the tools and softwares. Let’s look into some of its most important business applications that facilitate and simplify the most crucial daily business activities.
In mining basically a tool is used by businesses to turn mere data into useful information which in turn enables them to improvise their marketing and sales strategies. This makes the dealing processes more efficient and eventually increases productivity as well as profit of the businesses. Data miners have access to clusters of information. They look and analyze it logically by studying the buying patterns and associations and formulate a smaller representation.
Further the marketing and the sales teams refine and organize this information in an even simpler format using softwares and prepare reports that are easy to read and handy. This information is of paramount to the companies and is used to beat the other competitors in their market.
Customer Relation Strategy
Any company’s customer database is huge since it has been keeping account of every customer which has made even the smallest deal with the company. At times when information required is a little different than the usual categories; it becomes really tedious to get to the root of such evidences in the given time frame. Using the tool of data mining, information can be traced in the formats of customer fields, the pattern of their deliveries and many more. Also the buying and selling patterns can also be acquired with the help of DM.
Customer Relation Management (CRM) is about managing the approach of businesses to the relation building with the current or old customers and improving the quality of the customer reviews. It is possible only by improving the quality of delivery and making it better in terms of communication, quality of products and methods of commuting the deals. The current working folks can have access to apt information about the sales & exchanges made in the past and use the variant information about the process and utilize it for the current clients.
The next important clause is fraudulent cases and clients that commit such crimes. Surveys conducted by many have shown that millions in money is lost in fraud deals every year by many business organizations. The normal traditional ways to detect fraud are time consuming and complex. By studying the fraud cases, it is observed that most of the fraud instances are similar in pattern and content but not necessarily identical always.
Fraud at Point of Sale (POS) is the most practised of all the other plots. Data miners used the transaction statements and the CCTV footages to handle cases of fraudulent transactions. Retail shops also have their own processing softwares to classify and differentiate between transactions that are genuine and those that are not.
Thus data mining techniques assists businesses in solving various serious issues and validates the acquired results.
– Namita Patil