Significance of data mining

Data mining will offer personalized service

There is a shift from mass marketing, non-selective ways of means that uses television and magazines, to database marketing that focuses on individual needs. One reason for this shift is that it is difficult to measure the effect and ROI regarding the expenses. Database marketing can measure ROI and allow progress. Another reason is changes in the market. Consumers' consciousnesses shifted to two extremes: desire for either inexpensive prices or expensive prices in return for good quality service. Consumers want to differentiate themselves from others and display their own uniqueness, instead of possessing the same products. Thus, customers draw attention where personalized services can be provided. This indicates that there is a rise in the need for this type of service.

Data mining will increase new clients

Acquiring clients' information is essential to provide the services that are needed. With the internet, data processing is easy. First, gather clients' necessary information from the website. Then, data can be analyzed by the following two attributes: demographic and psychographic. Demographic attributes are basic information such as area (address), age, sex, and annual income. Psychographic attributes are information on interests and tastes. By data mining, it is possible to understand clients' interest, purchase tendency, and their characteristics. Then, knowing the above will enable to send appropriate information to clients. Thus, clients will receive personalized product and service. In addition, this will help a company to understand how to approach new clients.

Data mining maximizes user's life time value

Data mining marketing allows a more accurate approach to clients. In other words, it is closer to one to one marketing and maximize the user's life time values. By understanding its effect, it is possible to verify the appropriateness of this marketing strategy. A website will be capable of providing personalized information, personalized products, and personalized services. This process is necessary to establish a close relationship between the company and the clients. Brand Innovation will support to maximize the life time value of users with data mining strategy.