Data Mining Examples

Whether referred to as data mining or knowledge discovery, there are many examples that you can find that demonstrate the true power of analytic marketing methods. Among the most popular examples are shopping basket analyses. By examining the contents of the entire shopping basket as recorded at the time of checkout, stores can identify the items that tend to be purchased together.

While this may seem like a trivial example, as items such as bacon and eggs are often found to be purchased together, such analyses can reveal more interesting patterns, too. For example, an association has been found between diapers and beer sales. While it may not be immediately evident, one possible explanation for this finding is that new parents have less time to socialize at bars with their friends and therefore increase their purchase of alcohol for consumption at home.

Popular Data Mining Examples

Another popular example of data mining is using past behavior to rank customers. Such tactics have been employed by financial companies for years as a means of deciding whether or not to approve loans and credit cards. While this example may come from the financial sector, companies in all industries can use similar methods to identify their most valuable customers.

If these examples sound surprising and illuminate broader possibilities than you had considered, your company may benefit from enhancing your data mining capabilities. At The Modeling Agency, a team of experienced data miners can assist you with applying data mining to your own operations. Beyond the consulting services we offer, you can take advantage of our public seminar series, which will introduce you to data mining so that you can start putting the tools to work.