Datamining

Data Mining for Customers

CIS500

Dr. Albert Chima Domini

December 7, 2014

Data Mining for Customers

In today’s fast paced society the ability to communicate efficiently and effectively with your customers, employees and vendors can determine the success or failure of a business. To remain competitive in today’s markets, companies must adapt to the challenges of expanding services to increase profits and lowering expenses. Competitive advantages come from both the technology as well as the processes developed to integrate the strategies into their current business practices.

Technology allows us to increase our productivity and provide a continued competitive advantage; however the underlying processes will impact the success or failure. Many companies’ today use data mining to understand what the customers want and how likely it will be they will buy another similar product. By using predictive analysis companies gain intelligence to make the correct choices to not only get new customers but to maintain them long-term.

Benefits of Data Mining

Customers are required for a company to make money. Having the ability to understand a customer makes it more likely that they will be happy and buy your product. After the Great Depression, businesses had to change the way they did business before. Gone was the Production Era that included demands for any product would do. Customers had limited funds and now wanted particular tastes satisfied. This was the beginning of the Marketing Era in the United States. We have progressed even further in the business world, but the important lesson of “understanding what customers want and the reasons they buy” is still here and very present in today’s technological world (Boone & Kurtz, 2013, p. 14).

Predictive Analysis

Businesses today obtain massive amounts of data pertaining to their customer purchases and business operation which in turn means they need for a place to store this data. Databases are...