Data Mining In Sales

Planning

Presented By-
Name Roll No.
1. Sachin Singh 15
2. Sachin Lokre 60
3. Nikhil Chauhan 63
4. Deepak Jain 64
Contents

 What is data mining?

 Why data mining is required?
 Data mining Applications
 Data mining in Sales Planning
 Marketing
 Risk Management
 Fraud Detection
 Customer Acquisition and Retention
What is Data mining?

 Data mining refers to extracting or “mining”

knowledge from large amounts of data. Also
referred as Knowledge Discovery in Databases.
 It is a process of discovering interesting knowledge
from large amounts of data stored either in
databases, data warehouses, or other information
repositories.
Why data mining is required?

 Rapid computerization of businesses

produce huge amount of data
 How to make best use of data?
 A growing realization: knowledge
discovered from data can be used for
competitive advantage.
Data mining Applications

 Data mining is an interdisciplinary field with wide

and diverse applications
 There exist nontrivial gaps between data mining
principles and domain-specific applications
 Some application domains
Financial data analysis
Sales Planning
Telecommunication industry
Biological data and DNA analysis
Data mining in Sales Planning
 Retail industry: huge amounts of data on sales,
customer shopping history, etc.

 Applications of Sales data mining

 Identify customer buying behaviors
 Discover customer shopping patterns and trends
 Improve the quality of customer service
 Achieve better customer retention and satisfaction
 Enhance goods consumption ratios
 Design more effective goods transportation and
distribution policies
Marketing

 ‘Market basket analysis’ is a marketing method used by many

retailers.
 The study of retail stock movement data recorded at a Point of Sale
(PoS)—to support decisions on shelf-space allocation, store layout,
product location and promotion effectiveness.
 Another marketing tactic employed by many retail stores is the use of
‘loyalty’ cards and coupons.
Risk Management
 Retail organizations use data mining to understand
which products may be vulnerable to competitive
offers or changing customer purchasing patterns.
 Data mining enables retailers to remain competitive
and reduce risks by helping them understand what
their customers are really doing.
 Retailers can then target those customers who are
more likely to buy a certain brand or product.
 Fraud Detection
 Retail shrink because of dishonest employees.
 Some super-markets use CCTV, along with data
mining, to enable retail loss prevention to expose
cashier stealing.
 Loss of data, credit card fraud, duplicate payment
can be avoided with the help of data mining.
Customer Acquisition and Retention

 Data mining helps in acquiring and retaining

customers in the retail industry.
 Retail industry deals with high levels of
competition, and can use data mining to
better understand customers’ needs.
 Retailer can study customers’ past purchasing
histories and know with what kinds of
promotions and incentives to target
customers.