Tuesday, January 31, 2017

How Can Data Mining Help Small Businesses Gain Competitive Advantage



Seeing how the customer is always right, a business that already knows what their client is thinking will leave both parties feeling happy and satisfied. A great modern day tool that lends itself to understanding the customer better is called data mining. Data mining has been around for a while, and its use has brought great outcomes to customers and business owners alike. Today’s data collection is affordable and reliable, and it’s something that could be done internally as well as with help of professional external companies, and the information gained can be successfully used and combined with the company’s knowledge management system solutions.



Thanks to technology, the world keeps evolving faster than ever before. Not only are these advancements improving individual day-to-day lives, but are also providing businesses and companies with tools which, in this particular case, improve their understanding of the consumers trends (needs and wants), as well as of the things they’d like to see in the future. Thanks to the introduction of data mining, the gathered information gives business owners a positive review of what is – according to the consumers – going well, and what should be changed.

The process is a simple data analysis that helps point out patterns and/or anomalies in customer behavior. The patterns reflect where and how the businesses are working. Small businesses in particular are gaining a great amount of insight into what their customers want to see. In fact, a small business can understand and predict customer preferences and likely behaviors by analyzing the collected information. Then, the information can be analyzed and studied by comparing it to other similar data. By doing so, the analysis gives the small business owner a unique and original bulk of information regarding its customers. This information, apart from directly helping connect to the consumers, also produces a great array of economic advantages.

On account of data mining having prevalently been a tool used mostly by big businesses in the recent past, now that it’s finally financially available to businesses of all sizes (and budgets), it is becoming a standard tool that will leave business that refuse to adapt behind. Once the information is collected and the patterns analyzed, the advantages are many. Some of the benefits that the analysis brings include: increasing brand loyalty, cutting various business expenses, improving customer service, assisting employees, understanding customers, and much more. So what the data mining process essentially does is study the general business activities, and try to fully understand their potential. Data mining can also become a great support when the patterns analyzed can be used to foresee positive economic incomes that would otherwise have gone unnoticed.

A real asset, data mining can really help with almost everything. From brand loyalty to marketing, the data collected can tell a business a lot about itself. For small businesses especially, being able to connect with customers on a full-circle level is quite an achievement. Customers enjoy being cared for, and will ultimately return to those companies that treated them the best. So what better way to do that than knowing what each individual likes? Having the possibility of getting to know each customer better is an unprecedented benefit that goes a long way. And thanks to data mining, the information deemed “useless” back in the day, has become all but useless today.

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