Data mining Essay Example | Topics and Well Written Essays - 2000 words

Data mining - Essay Example Data-mining tools and techniques will also allow Spikes to predict the future behavior of the consumers and to develop advertising programs and promotions accordingly. Lucinda has been quite keen to develop customer profiles so that they are able to target the future sales campaigns in a better and cost effective way. Customer profiling is the process used by organizations to describe the characteristics of groups of customers by using relevant information from the available databases (Manifold Data Mining Inc., 2009). The drivers for their purchasing decisions and their discriminators from other customers are identified (Manifold Data Mining Inc., 2009) so that they can be used to market new products more effectively using data-mining. These customer profiles can be used to develop group specific marketing and sales plans. Customer profiles will also help Spikes to identify the most valuable customers so that their needs can be differentiated (Manifold Data Mining Inc., 2009) from the other customers. Customer profiling can also help improve one to one relationships with the customers. Using data-mining techniques, the customer data, orders associated with that customer and the data about the shoes associated with that order can be used to develop the customer profiles for Spikes. Therefore the profiles should contain the following data; CUSTOMER_NUMBER, FIRST_NAME, LAST_NAME, CITY, AGE, ORDER_QTY, TOTAL_ORDERS, TOTAL_PAYMENTS, TOTAL_SHOES_QTY. Most of these data fields will be derived from the databases using data-mining techniques and tools. This profiling will help Spikes define a better sales strategy, eliminate products not liked by the customers, introduce new products according to the preferences of the customers and gain higher response rates for promotional campaigns. Once the customers of Spikes start using the E-commerce website, individual data of each consumer will start building up in the Spikes