What is data mining?
Data mining is an analytics tool that allows executives to predict the future of customer behaviour. The results from data mining can be utilised to increase revenue, identify new business ventures and offer a new competitive edge. The innovative technology has many benefits, and of course as with any technology some drawbacks.
There will always be advantages and disadvantages of any new technology that arises. One advantage of data mining is that it can help to identify shopping patterns and patterns in consumer behaviour, common data mining methods can identify and analyse trends in shopping and consumer behaviour, this can consequently be used to enrich the customer experience through, for example, recommending the user products that are similar to ones they have looked at.
Data mining can help you boost the performance of your marketing campaign through data discovery and analysis. In addition, data mining is also beneficial for marketing campaigns because it is able to identify how customers respond to certain products available in the market and how companies should differentiate from competitors. Innovative data mining technology allows for business operations to run with ease which is beneficial for their profit earning ratio.
On the other side, it is commonly known that data mining collects potentially sensitive information about people using some market-based techniques and innovative technology. However, while involving those factors, the data mining system can be seen to violate the privacy of the user, which may put the business' reputation at stake. This information could also be misused inappropriately throughout the mining process. Secondly, the collected data could be out of date and therefore inaccurate. This is one of the most possible limitations to occur in the data mining process and therefore changes need to be made soon, to enhance the process for technology corporations and the user.