Data Mining

Many transactions at Starbucks are made with loyalty cards (starbucks card). In practice, Starbucks used data mining for the purposes of customer development. Data mining recorded customer’s transactional histories and purchasing habit. In other words, it provides Starbucks with the probability that a customer will buy other products based on their transactional history or psychographic profile. On the other hand, Starbucks also used data mining to track transnational histories record to identify and determine existing customer preferences. They combine this information with other data, like promotions and inventory into local events so that that can deliver better service to other customers. Based on the data provided, Starbucks able to segment its customers and then sets up rules based on their purchase behavior. In addition, Starbucks also can easily predict their sales volume and amount of materials needed and hence, Starbucks exposes to less risk in budget shortfalls and shortage of

To begin with, Dell software an information technology enterprises describes Data Mining as “an analytic process designed to explore data in search of consistent patterns and/or systematic relationships between variables, and then to validate the findings by applying the

It has recently come to my attention that Target Co. utilizes data mining to extract a wide spectrum of information about its customers by accumulating, analyzing and storing data about customer purchases. While I understand that this practice enables Target Co. to simultaneously deliver individually targeted advertisements across its diverse customer groupings, thereby increasing the potential for sales and improving customer retention, I also understand that large amounts of data unearthed by data mining can be manipulated to uncover hidden purchasing patterns to predict and shape future purchase decisions. Therefore, although there are significant benefits to using data mining, there are also serious costs associated with data mining that

It is needed to analyze customer behavior and preference data. To generate the necessary data and understand customers’ preferences, Harrah’s had to mine the data.

The retail industry has seen an increase in revenue as a result of their use of data analytics. The department store, Macy’s, implemented the use and

Due to this, customers have, in general, have used more coupons and bought more from Target. Companies depend on loyal customers and repeat purchases to bring in sales and profit. Target focus was to find shoppers’ that going through any life changes. Retailers knew that the customers that shopping habits not been change for a while will be difficult to persuade them to shop more. Pregnancy is one of the most important life-changing event that retailers are concentrating on. Target gathers their data to manipulate them with baby related products that they might need to buy. Therefore, marketers provide pregnant shoppers with appropriate information, ads, and coupons to make them spend more. However, Target customers were clueless that retailers were selling their personal demographics to other businesses. They used customer data to create detailed picture of their customer to promote and improve their advertising. One of the issue shoppers faced was Target was invading the customers’ privacy without their consent. Another issue regarding data mining customers realized Target didn’t provide clear policies on how company use customers’ data after they collected

It became an issue for consumer, and they felt uncomfortable due to companies invaded consumers privacy without their consent. Another issue regarding data mining is there no clear policies around how the company uses data once they have collected the information. After Target received negative publicity regarding its original data mining approach, they change their strategy by mixing all their ads, so it not that obvious that they were spying on them. It makes customers’ to assume that everyone else gets same coupons and ads. Data mining has given Target awareness into the relationship between product sales and online reviews. Target retailers identify guests how write reviews, examining their history of purchasing and invited to write review on their products. This program was highly successful, leading Target to obtain incremental reviews and increase sales of those key products. More importantly, data mining has empowered companies to find new opportunities for growth, make better decisions to succeed business goals and safe money. The retailer industry utilizes data mining and customer analytics to support customer decisions. Exploring how collected data can be manipulated to identify customers buying patterns and increase profitability is a growing business

(Bhasin, 2014) A question to be answered by data mining is how to identify unexpected shopping patterns in supermarkets? Data mining can acquire significant amount of information on customer buying habits and preferences. The importance of this question is to target marketing campaigns to maximize revenue on every day of the week. The data is taken from operational or transactional activities such as, sales, cost and inventory.

Data mining is another concept closely associated with large databases such as clinical data repositories and data warehouses. However data mining like several other IT concepts means different things to different people. Health care application vendors may use the term data mining when referring to the user interface of the data warehouse or data repository. They may refer to the ability to drill down into data as data mining for example. However more precisely used data mining refers to a sophisticated analysis tool that automatically dis­ covers patterns among data in a data store. Data mining is an advanced form of decision support. Unlike passive query tools the data mining analysis tool does not require the user to pose individual specific questions to the database. Instead this tool is programmed to look for and extract patterns, trends and rules. True data mining is currently used in the business community for market­ ing and predictive analysis (Stair & Reynolds, 2012). This analytical data mining is however not currently widespread in the health care community.

In order to gain information about the wants of the customers in each region, Macy should collect enough data from its Transaction Process System. The transaction process system will enable Macy’s to view what is being bought in each region. This enables for more accurate data to be implemented in the information systems. When data is collected form TPS, then management can collect the statistical data from the market and analyze them using analytical software applications, such as Hadoop. Another way that they can collect information for their information systems would be to create online campaign, a survey, whatever is available.

Big data technology is used to help produce useful information out of the massive amount of data collected from retail stores. According to Dylan Love,

It is needed to analyze customer behavior and preference data. To generate the necessary data and understand customers’ preferences, Harrah’s had to mine the data.

When consumers shop online, data mining is collecting their buying habits and other online searches. With every search they do, their information is collected by companies as Acxiom. These companies collect data such as age, race, sex, education

Business analytics plays a major in sourcing new customers in emerging markets. Target has over the years, employed business analyst that mine customer data for shopping habits and use the data observed to design advertising and marketing schemes that can

Wal-Mart’s advanced data-mining tools allow them to fine tune and improve customer responsiveness, giving customers what and when they want in offer. It can be compared to