The primary goal of data mining is to get the most of the data stored in the huge company databases. In the knowledge discovery process, the large set of data is analyzed to get hidden and useful knowledge. Data mining and machine learning applications can be found in weather forecasting, medicine, transportation, healthcare, insurance, and the government. But the use of data mining comes with issues like privacy, security, and information misuse.
How Is This Tech Being Used?
Data mining has found its way in many industries. Let’s see their applications:
The data mining helps the marketing companies in building the models on the historical data to identify the who will respond to the marketing campaigns like direct mailers, social media, etc. It allows marketers to have an appropriate approach to the selling profitable products to targeted customers.
The data mining brings a lot of benefits to the online retails companies through the market basket analysis. It may allow the store to have an appropriate production arrangement in a way that the customers can buy frequent buying products together with the pleasant. With proper mining, companies can offer discounts for certain products that will attract more customers.
With data mining, the financial institutions can get information about the loan amortization and the reports about the credit offtakes. With the help of the model from the historical customer data, they can quickly segregate the good loans from the bad ones. It can also help the banks and the financial institutions to timely detect the fraudulent credit card transactions to protect the card owner.
The data mining has found its applications in the operational engineering data. It allows the manufacturers to detect the faulty equipment to find the right parameters. For instance, in the semiconductor industry, data mining has reduced the defects manifold.
Most taxing systems have gone online, and they are making the best use of data mining to identify the evaders and take appropriate corrective action to reduce the loss of the revenue.
Keep Objectives That Are Met By Data Mining
- It increases customer loyalty. With the help of data mining, the companies have become smarter, and they can serve their customer base well by creating the appropriate segments. Loyalty programs can also be launched to make the customer buy more.
- The companies who have been resorting to data mining want to discover the hidden profits locked in their databases. With the identification of the patterns and data mining helps in reducing the risks as well.
- Data mining helps in more satisfied customers
Some Concerns Related to Data Mining
- There have been concerns about personal privacy as data mining tries to find out more information about an individual or the company.
- Security is another issue. There are many regulations which have been repealed because they were intruding privacy.
The opportunities emanating from data mining and machine learning are immense. But addressing the concerns should be a priority before reaping the benefits.