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A major challenge for businesses is how to turn large, convoluted data sets into information that users can leverage to improve operations. Data mining software allows users to apply semi-automated and predictive analyses to parse raw data and find new ways to look at information. For example, e-commerce companies use data mining applications to analyze visitor demographics and discover how to deliver a better customer experience.
Data mining applications help users discover correlations and connections within large data sets. These might have gone unnoticed without these algorithms.
Companies implement data mining software systems to:
A classic example of how data mining software can be used is with customer purchasing patterns at grocery stores. If shoppers tend to buy items such as toilet paper, diapers and alcohol before the weekend, retailers can place these items closer together to maximize revenue. Store owners can further capitalize on this opportunity by running specials on these items to encourage additional purchases.
When evaluating data mining software, you should consider the following: