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Data Mining is Key to Survival in a Global Marketplace

onlineIn a constantly evolving, global, digital marketplace, data mining will be the key to coming out on top. Since today’s economy can’t ignore the constant, surrounding influences of a completely universal market, applying information intelligently allows a business to create a need for their product or service and effectively fill it, whether focusing their efforts locally or worldwide. Each and every business today has the same opportunities to collect and store data as every other. For companies whose business exists mostly, or even solely, on the internet, this store of potential knowledge is, not only broader, but all the more important. The deciding factor in success, then, will be who can apply the collected information with better predictive modeling.

A clear example of this challenge will unfold as we watch the development of businesses like Groupon, whose client base is at the root of its successes. Groupon offers daily online discounts which are highly focused to a client’s georgraphic placement and their interests. At once a novel concept and one which is no longer unique, Groupon’s business model, though sound, will be challenged by imitators, especially larger competitors with vast stores of consumer data to mine, like Amazon. Amazon, a super power in online commerce, has been tracking and storing data on consumer purchase history and even browsing habits for some time. How can a smaller company like Groupon hope to compete? As described in an editorial on the Financial Times, James Bateman writes,

“My feeling is that Groupon is worth the value of its email database, and if it has data on customer spending habits (that is, which promotions they have responded to) then for many businesses this could theoretically be a value acquisition. But trying to compete against Amazon – if the latter takes the daily-deal market seriously – seems doomed to failure. The only consolation that I can offer Groupon at the moment is that Amazon’s focus seems poor.”

Mr. Bateman cites Amazon’s failure to specify more carefully which clients receive which deals as Groupon’s key to survival. Given enough time to grow and cultivate their consumer list, could Groupon compete realistically with a giant corporation like Amazon? Perhaps not, but we can clearly see that it is data mining and predictive modeling of client behaviors that is allowing Groupon to hold on against this giant adversary.

Whether your company is competing in the vast, online marketplace as well, or has a more direct relationship to your clients, data mining can be a key factor in your growth and success as well. Saving you from wasting resources and energy on misplaced or misguided marketing efforts, Data mining can help your business identify new outlets and opportunities.

If you are ready to learn more about how data mining can support your marketing efforts, sign up for one of The Modeling Agency’s free webinars. To gain a broader understanding, TMA also suggests attending their in-depth Training Seminars.

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