In this ever- rising competitive world, it is extremely difficult to attract new customers or retain old ones.
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In this context, you will have to depend on the latest tools and cutting edge technology to help you remain on the top. Data mining is a powerful tool that helps you to understand and manage your customers better. Database marketers use data mining, among many other things, to identify prospects, build and execute effective campaigns and to measure results. In the crudest form, data mining refers to going through piles of customer data to extract useful information from them.
Miners go through historical data to identify patterns in customer behavior and spending. Using this information, marketers could separate their customer base into frequent or inactive responders, high or low spenders etc. Separate marketing strategies could then be applied to retain or bring back these customers. It is a know fact that for any campaign to be a success, its timing is extremely important. One cannot predict a right timing based on intuition or gut feeling. By analyzing customer data, you can determine the best time to launch a new product or campaign based on hard evidence.
It is not enough that you use powerful tools to understand your customers. How this information is used to provide better customer satisfaction is what determines the success of your marketing efforts. Using the available information, you should try to increase the lifetime value of existing customers. For example:- if you are a mobile service provider, data mining can help you identify customers who spend a lot of money making international calls. You could then target your marketing efforts to provide such customers with an attractive offer for international calls alone!
Hence, data mining is a tool that can multiply your investments, if proper use is made out of it at the right time.