Data Mining was created based on the intellectual development of human beings, which was obtained by observing patterns, elaborating hypotheses, and validating them. With the advent of the computer age and its artificial intelligence, it was possible to store thousands of data that would be impossible for a human mind to store. This man-made machine has helped civilization process data and segment ideas.
Companies have used this feature as a great tool to boost sales results based on data analysis. Before explaining Data Mining, it is important to remember that we live in a great information age and a large volume of data. All this created information is gathered, stored, and organized in a huge digital warehouse called Big Data.
This process facilitates companies’ decision-making based on data analysis, not guesswork. However, a large volume of unfiltered and uncategorizable data can make it difficult to target each strategy. And that’s exactly what Data Mining sets out to do: explore a large volume of data in search of consistent patterns. The tool also uses principles of association or temporal sequences to detect variables, automatically classifying and forming subsets of data, rules, hypotheses, and dendrograms, among other purposes.
Discover the features of Data Mining
Every day, companies accumulate a large volume of raw data, consisting of information from customers about what they purchased, when, and how many items and services were purchased.
By conducting surveys and studying this data to analyze behaviour and buying trends, your company will operate business intelligence (BI). However, we should fragment this database and apply a more sensitive and improved filter to search for more specific patterns and possible variations. In that case, we will be practicing the principles of Data Mining. Below are some of the categorizations that the tool provides:
- Probability prediction;
- Capture and definition of unknown data;
- Grouping information for concise analysis;
- Automation of prediction of fundamental patterns in the analysis of trends and behaviours;
- Great help and influence in decision-making.
Why is the tool important for companies?
With the conquest of ever-increasing audiences, having the help of a tool like Data Mining helps to optimize companies’ time and strategic analysis. Salespeople are not required to identify the behavioural patterns of their customers, as this artificial intelligence will help your company to see the most important data clearly – as it transacts in the areas of people, machines, and business.
Data Mining also makes it easier to identify the most favourable moment for anticipating your demand by allowing us to analyze consumption behaviour and purchase intention. In this way, it enables companies to carry out preventive plans and identify improvements.
Another great feature is the ability to study competitor data. This analysis allows us to do data-driven planning of other companies’ market actions, giving us a huge competitive advantage.