Data is incredibly important in business, and Microsoft Excel can be a powerful tool in your business analytics toolbox for data mining analysis. This article will explain what data mining is, how it can benefit your business, and how Excel can be the tool of choice for bringing the benefits of data mining to your business.
What is data mining?
Data mining is a new technical field just in its infancy and already showing enormous progress. Put simply, it is knowledge discovery: the process of sifting through data to discover linkages and trends. In today’s information age, data about nearly anything imaginable is more accessible than ever, and data mining takes advantage of that fact and of powerful computing technology to make your data work for you. Because of the volume of information involved, data mining relies on computers to do most of the initial work and to highlight trends that an analyst might not otherwise have noticed.
How can data mining help your business?
Data mining can tell a business analyst things the analyst didn’t even realize they were looking for, in effect addressing the “unknown unknowns” and providing fresh insights to drive business decisions. Data mining has many possible applications for businesses, including:
Revealing trends in customer behaviour and loyalty
Creating direct marketing campaigns with the highest likely rate of response
Simplifying market basket analysis
Predicting what types of interactive marketing would best appeal to each customer
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