Gain Incremental ROI With Data Mining Insights

In today’s digital world, data is like Pandora’s box—full of business-enriching insights. It not only helps understand the changing market paradigms, but also perform effective competitor analysis, and know the consumers better. These actionable insights retrieved also help companies to increase their customer loyalty, reduce client churn rate, and unlock hidden profitability.

So, how do businesses gain these insights that support their decision-making process? The answer to this is data mining; it is like a knowledge discovery process that enables researchers to find relations, predict patterns, and forecast trends from the datasets.

But gauging out valuable information from different resources without compromising on data compliance laws is a significant undertaking. Especially in the highly-regulated industries like finance, healthcare, and pharmaceuticals, extracting useful information is a tough challenge because of the complexities involved.

Engaging in data mining in financial services or any other vertical is a feasible option rather than opting for an in house setup. The latter adds to operational expenditures in terms of resource training and hiring costs, infrastructure, technology implementation, and so on. 

Investing in outsourced data extraction services is a smart way out as the professionals already have the potential required to efficiently mine data from carefully scrutinized sources. They deliver reliable data insights within the stipulated time and budget. Apart from this, the data experts assist businesses with the following:

• Database Marketing

The data mining professionals examine customer purchasing patterns, look at the psycho graphics and demographics of prospects to build their profiles, and help in creating distinguished products that will sell themselves. They go the extra way to feed your database information with surveys, subscriptions, and questionnaires. This intelligence then helps you target the right prospects.

• Sales Forecasting

Sales forecasting looks at what customers bought, when they bought it, and predicts whether they will buy it again. Companies can use this type of analysis to map out a strategy of planned obsolescence or determine which product can be sold complimentary.

The same analysis also looks at the number of customers in your target market and helps in predicting how many will buy your product/service offering. So, when it comes to forecasting sales, professionals help you in creating three cash flow projections that are realistic, optimistic, and pessimistic. Hence, businesses can figure out the right amount of capital to be kept on hand to endure the worst situation possible, if sales don’t go as planned.

• Market Segmentation

One of the tangent uses of data mining is customer and market segmentation. This helps you in understanding your competition better. Besides, breaking down markets into meaningful segments such as age, gender, income, or occupation helps in running optimized email marketing campaigns and devising fail-proof SEO strategies.

Collaborating with experienced data mining companies also helps in improving the conversion rates as stakeholders can better focus on promotions in a tight, highly-interested market. They can understand who their competitors are in different segments. Based on this, they can customize their products and promotions that also satisfy the audience’s needs in a way a generic, broad promotion never will.

• Innovative Product Production

Insights retrieved from data mining help in designing innovative products customized for different market segments. In fact, stakeholders can determine which features users may want, though truly innovative products aren’t created by giving consumers what they want. Instead, when you look at the data gathered from your customers and spot holes that they are demanding to be filled, a truly innovative product is created.

Surprisingly, the most innovative businesses never start with a product. They begin with a pain point that was uncovered from mining data and then build a minimum viable product that solves the customer’s problem in a way they never imagined. Doing this will automatically push you ahead of your competitors.

• Warranty and Guarantee

Database mining helps in predicting how many people will cash in on the warranty a business has set up. The same goes for guarantees. One of tried and tested ways to create a successful warranty/guarantee is to look at the data of past sales, warranties, guarantees, and profits. Doing so enables the stakeholders to offer a 110% money-back guarantee or a warranty to not lose money when people return the product. Hence, you can also get an edge over the competition.

Wrap Up

By now it is clear that the more data is collected from customers, the more value a business delivers to them. The more value a business can deliver to its customers, the more revenue it can generate and get incremental ROI—and an efficient data mining process is what will help you do that. Your bottom line will thank you for letting professionals perform such tasks. Therefore, all you need to do is begin finding the right outsourcing partner.

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