Imagine, it’s your parent’s 50th anniversary and you have booked a cake for them. It’s 11.45 pm and just 15mins before the date. You get a call from the delivery boy standing outside Sunshine apt. But it’s in a different city or another locality, which is 20km away from your home. Oh no! There is no other shop nearby which is open and can prepare the cake and deliver it in 15 mins. Everything is screwed. Do you know why it happened? Indeed you might have guessed, the address shared was incomplete or incorrect, and here comes data mining. Just missing a piece of minute information that your house is in Thane West, has spoiled the most awaited moment. The silver jubilee of my parents.
We all know these minute data become such a crucial part of the information, and what if the business is carried out across borders? The criticality of the data becomes even more critical, time-consuming, and the cost of a single mistake tri-folds.
Why businesses are going global
With the ubiquitous use of the internet and portable devices, the business, small or big, sees no borders. A person can sit in India and buy a product from Italy. A student can apply for Data Science from Harvard University online. Couples can take a digital tour to foreign destinations and decide on their honeymoon trips.
As everything is now online, there is no more a need for a physical business set up across the world. And this is creating more and more opportunities for Entrepreneurs to spread their wings for the customer to have access to products or services at their fingertips. To obtain the best from this new normal, businesses are aligning to the demand of customers and extending their reach globally.
No more beating around the bush
Earlier product was the king and if you have the best product and the right pricing, the customer will fall for it, but the situation has changed, now the customer is the king. It’s all about making tailor-made solutions for the customer, the perfect fit as per their choice. What they feel about your product, service, and organization as a whole matters a lot.
It’s no more beating around the bush, as all the data is now available digitally. What they think, what they feel, and what they wish for are all available in their choices, reviews, and social profiles. It’s no more a trial and error of what product may fit the customer’s choice. Now every business has the golden opportunity of knowing their customer base. How much they can earn from which category of customer and which product is worth investing time in and where is my majority of business coming from.
Data mining examples
Do you know that the majority of the business of Thailand comes from India? Yes, the majority of tourists visiting Thailand are Indians, and thus they have adopted the Indian culture in their business in such a manner that you might not even recognize that a particular person serving at an Indian cuisine restaurant is Thai or Indian.
McDonald’s has a separate menu for all the countries it’s serving, based on the data it has collected and turned into information. Similarly, it has studied the most loved food for Indians and selected Chatpata Aloo Naan in the menu, in Indonesia they had Double Choco Pie and beer in Austria.
BMW creates some of the most high-tech cars we have yet seen and it is using data mining along with AI and analytics to come up with future-ready innovative and autonomous cars.
Data mining for global business
Do you know why producing the Covid-19 vaccine and making it available around the world was a miracle? Normally it takes ~10yrs to come up with a vaccine for a particular disease, but during the covid era, scientists, doctors as well as technicians around the world were able to make the 1st human trial vaccine between 12-18 months. This was all possible due to scientific efforts and the technologies which also included Data Mining, Machine Learning, Artificial Intelligence.
So, what makes data mining so important to businesses?
Businesses around the world want major input about their customer to plan. And strategize their next step in the ladder of business growth. Every business now has piles of data but is not sure about how to make sense of that data to achieve their business purpose. Businesses that apply data mining can have a competitive edge, a deeper insight into customer behavior, a better overview of business operations, more opportunities for customer acquisition, and an ability to make better decisions.
Let us see how businesses use patterns and relationships to make crucial decisions. Below are the top trending reason;
Market Segmentation – Segregating the consumers based on specific characteristics to market the product based on the targeted audience.
Predict Churn Rate – Attrition not only happens in the big organizations, customers also leave a specific brand and select another. Data mining helps you predict which customer might leave you and for what reasons.
Direct Marketing – Based on past data and recent research, get the probability of which customer will have the highest response rate for your communication.
Interactive Marketing – Know what your customer is interested in seeing online. Youtube and Amazon have already honed this skill using data mining.
Market Basket Analysis – Looking at what’s already in the basket, the app can suggest based on data what is the most probable thing a customer could buy. It suggests what things are mostly purchased together. E.g. An extended warranty at minimum cost is always shown when you buy a mobile phone.
Trend Analysis – Realize what’s trending and what’s not in the market. Find out the recent attraction of the customer to further push the ads or promotions or decide on what more to modify in the product.
Fraud Detection – Banks normally use data mining to identify a probable fraud or even a defaulter for repayment of loans.
Conclusion
Data is a valuable asset only if it can be converted into insightful information. To gain this meaningful information, one must be able to discover patterns and relationships among data and link it to the business goals. Different industries use data mining in diverse contexts, but the purpose is similar, that is to better understand customers and the business.
Data is what gives the competitive advantage to the business. But only if organizations know how to use the gathered data and apply the knowledge obtained from it. Or else it would be just a meaningless product-consuming space either on your cloud or offline servers. Data mining is not only for the benefit or loss, it’s also for preventing fraud, detecting crimes. And also for safeguarding your reputation from possible threats that may arise if neglected at right time.
Taking that 1st step is the most important part. Oriental Solutions experts can help you take that perfect 1st step to climb the ladder of success. Reach us @ http://orientalsolutions.com/contact.php or call at 044 2498 6018For the latest updates, follow us @ https://www.linkedin.com/company/oriental-solutions-private-limited/
