Data Mining: Why Is It Important? Know Its History, Techniques, Applications

Data mining is the process of uncovering patterns, anomalies, correlations within large data sets and other valuable information to predict outcomes. Data mining is very useful because it helps firms increase revenues, improve customer relationships, cut costs, reduce risks, and improve decision-making. According to the official website of SAS, a statistical, software suite that is used for data management, data analysis and visualisation, retailers, banks, manufacturers and telecommunications providers use data mining to discover relationships between price optimisation and demographics to how the economy, competition, risk and social media are affecting their business models, revenues, operations and customer relationships. Sales and marketing: Companies can use data mining to observe consumer demographics and online user behaviour in order to optimise their marketing campaigns, and improve segmentation and customer loyalty programmes. Operational optimisation: Organisations can reduce costs across operational functions through process mining, which leverages data mining techniques.