Data mining is: 1) The practice of examining large databases to generate new information and 2) the process of analyzing data from different perspectives to make it insightful and useful.
Data mining is used by companies to increase revenue, decrease costs, identify customers, provide better customer service, listen to what others are saying and do competitive intelligence. And that’s just some of the ways.
Here’s are 20 companies that do data mining and prove it makes their business better.
AMAZON: With $5 off, for those who use the Amazon Price Check Mobile App – to scan the products in store, take a picture of the product or perform a text search to find the lowest prices, the app also prompts the customers to submit the in-store price. Amazon is collecting intelligence and valuable pricing information from its competitors.
ARBY’S: The fast food company uses data mining to help them determine the best targets for their advertisements. They can see which advertisements are most effective, while seeing the channels that are most receptive to each ad pitch. This allows them to ensure every advertisement utilizes the appropriate channel to increase the number of leads from their marketing.
CAPITAL ONE: Data mining and big data management to help them ensure the success of all customer offerings. By analyzing the demographic data and spending habits of customers, they’re able to determine the most optimal times to present various offers to clients, thus increasing the conversion rates of their offers and gaining more leads from their marketing budget.
DELTA: Large airlines like Delta, monitors tweets to find out how their customers feel about delays, upgrades and in-flight entertainment. When a customer tweets negatively about his lost baggage, the airline forwards to their support team. The support team sends a representative to the passengers destination presenting him a free first class upgrade ticket on his return along with the information about the tracked baggage promising to deliver it as soon as he or she steps out of the plane.
DUETTO: Known online for their “hotel optimization,” Duetto makes it easier for companies to personalize data to individuals searching online for hotels. Duetto makes it easy for hotels to personalize their prices by taking data such as how much you typically spend at the bar or casino to incentivize you with a lower price for your room. Therefore the hotel can give you a better price, knowing you’ll spend money on other services. The hotel can give you a better price, knowing you’ll spend money on other services.
EXPRESS SCRIPTS: Which processes pharmaceutical claims, realized that those who most need to take their medications were also those most likely to forget to take their medications. So they created a new product: Beeping medicine caps and automated phone calls reminding patients it’s time to take the next dose.
FREE PEOPLE: The more bohemian segment of Urban Outfitters, uses millions of customer records (reviewed by an in house analytics team) to shape the next season’s offerings. Information like what sold, what didn’t, what was returned and more fuels the brand’s product recommendations, the look of its website and what kinds of promotions customers see to improve Free People’s bottom line.
GOOGLE AND CENTER FOR DISEASE CONTROL (CDC): Google proposed a different approach. Using historical data from the CDC, Google compared search term queries against geographical areas that were known to have had flu outbreaks. Google found spikes in certain search terms where flu outbreaks occurred and identified forty-five terms that were strongly correlated with the outbreak of flu. Google then started tracking the use of those terms and is now able to accurately predict when a flu outbreak is occurring in real time. Using this data, the CDC can act immediately.
KOHL’S: Customers are more likely to respond to an offer when it’s at the moment of purchase. That’s why Kohl’s does real-time, personalized offers. Shoppers can opt in for offers via their smartphones. So if a shopper lingers in the shoe department, for example, they can receive a coupon on the shoes they looked at online but never bought,
KREDITECH: European company, uses more than 8,000 sources including social media, to create a unique credit score for consumers, which is then sells to banks and other lenders. And they have discovered some surprising correlations between social media behaviors and financial stability. For example, if your Facebook friends use all capital letters, your score is docked.
MACY’S: Through sentiment analysis of big data, Macy’s finds out that people who are sharing tweets about “Jackets” are also making use of the terms “Michael Kors” and “Louis Vuitton” frequently. This information helps the retailer to identify what brands of jackets should be offered discounts in their future advertising campaigns to attract customers.
MCDONALD’S: With more than 34K local restaurants serving 69 million customers across 118 countries , 62 million daily customer traffic, selling 75 burgers every second, $27 billion annual revenue- McDonald’s is using big data analytics to gain lot more insight to improve operations at its various stores and enhance customer experience. McDonald’s analytics system analyse data about various factors such as wait times, information on the menu, the size of the orders, ordering patterns of the customers.
NETFLIX: To create data models and find what makes show or movie popular among consumers, according to the insights they gained from their data, House of Cards was the ultimate entertainment experience. They went all out, winning a bidding war with other companies over the rights and immediately scheduled two seasons of content before showing a thing. It was a huge success, and the best part is they almost knew it would be.
NORDSTROM: With 225 retail outlets, Nordstrom generates petabytes of data from its 4.5 million Pinterest followers, 300,000 Twitter followers and 2 million likes on Facebook. Their analytics system monitors customer behaviour by tracking – How many people enter the store, which section they walk in, how long they stay at the store and for how long they shop in a particular section. This helps Nordstrom decide what products should be promoted to which customers when and through what advertising channel.
PANDORA: With 72 million users and the data for approximately 200 million users’ listening habits, Pandora is a name to reckon with in the music industry for providing music recommendations that people really love. Apart from the data like gender, age, zip code that users provide at sign up, Pandora tracks all the songs that a particular user likes and dislikes, from which location they listen, from which devices they listen and more – to provide customers with curated music catalogue based on interests and demographics.
PREDPOL: The Los Angeles and Santa Cruz police departments, a team of educators and a company called PredPol have taken an algorithm used to predict earthquakes, tweaked it and started feeding it crime data. The software can predict where crimes are likely to occur down to 500 square feet. In LA, there’s been a 33% reduction in burglaries and 21% reduction in violent crimes in areas where the software is being used.
STARBUCKS: As the leading coffeehouse company in the world, Starbucks manages to open new stores in very close proximity with their other stores, while still guaranteeing a high success rate. Normally, when expanding a company, it’s needlessly risky to open a new location just a block from another location.
T-MOBILE: Data mining helps reduce customer turnover rate. By analyzing big data, T-Mobile can determine the core causes for turnover, allowing them to implement effective solutions that will keep more clients on board. As a telecom company, they accrue boundless quantities of data every year, and without big data management, the ability to analyze the data would be greatly inhibited.
THOMSON REUTERS: Financial experts can gain competitive advantage by analysing the twitter sentiment data by tracking specific tweets from various companies and people. This helps financial professionals get an overview on the number of positive and negative sentiments related to any given company. Sentiment analysis along with other advanced big data analytics solution helps the financial professionals spot the financial market and any events impacting the company as they happen.
WALMART:The mega-retailer’s latest search engine for Walmart.com includes semantic data. Polaris, a platform that was designed in-house, relies on text analysis, machine learning and even synonym mining to produce relevant search results. Wal-Mart says adding semantic search has improved online shoppers completing a purchase by 10% to 15%. “In Wal-Mart terms, that is billions of dollars,” Laney said.
Do these companies prove how data mining could make your business better? Could your company benefit from data mining?
Web Analytics tools are used to collect, measure and analyze web data. Web analytics tools are not just for measuring web traffic. They are used to:
Find your audience on the internet
Attract them to your website and understand behaviors
Learn from competitors
Test new ideas
See where your audience goes and what they tell others
With this knowledge, any company has a blueprint to improve business. Plus invaluable market research.
What are the best web analytics tools?
Here the 12 best web analytic tools any business could want.
FIND YOUR AUDIENCE: The best way is to find your audience is to identify the keywords they query that are likely to drive them to your unique product or service. Here’s how to find your audience on the internet.
GOOGLE TRENDS: Has cataloged every keywords ever searched on Google and displayed it as a graph showing the term’s popularity over time in (nearly) real time. The graph can be examined by countries, regions, cities and customized time periods to name just a few of its features.
GOOGLE KEYWORD PLANNER: Provides traffic estimates of the Average Monthly Search Volume of keywords as well as ideas on others. You can even give the Google Keyword Planner a link to your website or landing page and it provides keyword ideas on what it thinks your website is about.
SEO BOOK RANK CHECKER: Want to know where your website ranks for your keywords? SEO Book Rank Checker tells you for Google, Bing and Yahoo. Plus, the Firefox Rank Checker extension allows you to easily check your website rankings from your browser.
ATTRACT THEM TO YOUR WEBSITE AND UNDERSTAND BEHAVIORS: A visitor’s behavior and drivers and conversions are critical to achieving business goals. Here’s are the best tools to understand website behaviors.
GOOGLE ANALYTICS: Tracks and reports website traffic – how much, where it comes from, what is most viewed and does your audience take desired actions. Google Analytics’ approach is to show high-level, dashboard-type data for the casual user, and more in-depth data further into the report set. Google Analytics is the most widely used web analytics service on the Internet.
ADOBE MARKETING CLOUD: Is a collection of integrated online marketing and Web analytics products by Adobe Systems. It is a comprehensive marketing solution which enables marketers to measure, personalize and optimize marketing campaigns for optimal marketing performance.
GOOGLE SEARCH CONSOLE: Optimizes visibility of a website. It helps to monitor and maintain your site’s presence in search results by letting you know how many pages are found (or Indexed) on search engine, what websites are sending traffic to your website through Inbound Links and keywords that result is clicks to your website.
LEARN FROM COMPETITORS: Competitors are a valuable source of comparison and learning. Here are best tools to analyze and learn from your competitors.
SIMILAR WEB: Uses big data technologies to collect, measure, analyze and provide user engagement statistics for websites and mobile apps. It collects data from panel of web surfers made of millions of anonymous users equipped with a portfolio of apps, browser plugins, desktop extensions and software.
ALEXA: Also estimates and ranks traffic based on the browsing behavior of people in their global data panel which is a sample of all internet users. Alexa measures closely align to Google Analytics for many metrics.
WEB TRENDS: Analyzes confusing data gathered from websites and transforms it into actionable information that can be used to optimize web traffic and campaign ROI. They look for opportunities that other providers may have missed and act on them before competitors have a chance.
TEST NEW IDEAS: To improve the success of your effort, you’ll want to test new idea. And it can be done in ways that measure and prove the impact of your initiatives.
OPTIMIZELY: Gives businesses the ability to conduct A/B testing, in which two versions of a page can be compared for performance. Multivariate testing can also be done. Optimizely enables personalization, which can be used for making data-driven decisions. It meets the diverse needs of thousands of customers worldwide looking to deliver connected experiences to their audiences across channels.
SEE WHERE THEY GO AND WHAT THEY TELL OTHERS, What people say about your brand has an important impact on your business and brand reputation. Here’s are some of best tools available to listen and measure social channels.
CISION: Monitors conversations to see where the discussion about your brand is taking place, what’s being said and who is leading it. With Cision social software, a single dashboard provides valuable insights to position your brand against the competition.
BRANDWATCH: Examines data from millions of sources, from social networks like Facebook, Twitter and YouTube, to news, blogs and even product reviews. It can deliver a huge amount of data for analysis. Its extensive filters and customizable reports make that data easy to analyze and put to use for marketing campaigns, product research and reputation management.
Do these tools give you a complete picture of web analytics and the best tools to use? Are there any others that you would include? Do you need a partner to manage and guide your business with web analytics?
Google Analytics is the most popular web analytics tool in the world.
Google Analytics has been installed on over 10,000,000 websites. It is used by 64% of the Top 500 US Retailers, 45% of Fortune 500 companies, and 55.9% of the top 1 million domains as identified by Alexa.
But what good is the data if you don’t know what to do with it.
Here are 10 ways to get killer insights from Google Analytics with video tutorials.
SET DATE RANGES LONG ENOUGH TO SHOW TRENDS: The date range selector is at the top right of every page. It shows the last 30 days by default. But 30-days often isn’t long enough to show trends. Establish a time frame long enough to allow you to tell a story. 90 days, year to date or the last year is a longer and often more effective date range for showing trends, seasonality and the impact of key events. Here is how to use the date range selector.
USE BOUNCE RATE EARLY AND RATE: Bounce Rate is the percent of visitors to a website who leave after viewing only one page – the lower the percent, the better the Bounce Rate. It is a key web metrics for website relevance because if your site is interesting to visitors, they’re likely to view more than one page. Google Analytics shows Bounce Rate for many measures. The more often you use Bounce Rate, the more insightful are your conclusions. Here’s how to know Bounce Rate for all your pages.
UNDERSTAND ACCESS FROM SMARTPHONES: According to SimilarWeb’s State of Mobile Web US 2015 report, roughly 56% of consumer traffic to the leading US websites is now from mobile devices. There are many sources that report traffic from mobile devices by industries like financial services, auto and retail. Knowing mobile traffic to your site is an important way to look at traffic. It’s likely to already be a large percentage and it’s definitely going to go up.
IDENTIFY KEY LOCATIONS AND GEOGRAPHY: Let’s say your company’s operations are organized around specific geographical sales regions: East, Central, and West. By default, Analytics only reports on default geographical regions. Unless, by using the geographical type in Data Import, you create a mapping between the specific regions you use for your business. You then see your data organized around these custom sales regions. In the US, the data is available by state, metro area and city. And the maps are very telling.
KNOW WHERE VISITORS COME FROM: In web analytics, traffic sources are different kinds of sources that send traffic to your web site. The metrics you find are: 1) Direct Traffic: All those people showing up to your website by typing in the URL of your Web site or from a bookmark, 2) Organic Search: Search engines – Google, Bing, Yahoo, Ask and other, 3) Paid Search: Paid ads on search engines from services like Google Adwords and Bing Ads, 4) Referral: Other Web sites sending traffic to you. These could be as a result of your banner ads or campaigns or blogs or affiliates who link to you and 5) Other: These include campaigns you have run, e-mail and direct marketing.
LOOK FOR INNOVATIONS WITH SITE SEARCH: If you have a search engine on your website which visitors can use to search the site, you can measure the usage of this feature. The results you can find under the Site Search category in Google Analytics. In the overview, you see the percentage of visits with and without site search. Also some other metrics such as % search exits, % search refinements, time after search and search depth. But the real nuggets come for the words visitors use to search. For example, we work with a scissors company and the #1 word in Site Search is “left-handed.” Imagine that. A new product idea is handed to you through Site Search on Google Analytics.
FIND MOST VALUABLE PAGES IN SITE CONTENT: Site content reports consist of: 1) Pages, 2) Content Drill Down, 3) Landing Pages and 4) Exit Pages. Pages report displays the top pages on your website based on traffic, as well as each page’s page views, unique page views, average time on page, entrances, bounce rate, % exit and page value. Content Drill Down is helpful for websites that have sub-folders such as domain.com/blog/ and domain.com/support/ or something similar. The Landing Pages report lets you see the top pages where visitors enter. Exit Pages show the last pages people visit before exiting your website. These are the pages you want to look at to see what you can do to keep visitors on your website longer.
ANALYZE ACTIONS WITH EVENTS: Events are user interactions with content that can be tracked independently from a web page or a screen load. Downloads, mobile ad clicks, gadgets, Flash elements, AJAX embedded elements, and video plays are all examples of actions you might want to track as Events. Using Event Tracking to measure interaction and conversions on your website is really beneficial for getting a better understanding of how your users are engaging with the content and features of your website in a much more advanced way than the standard reports can manage.
MEASURE METRICS MOST IMPORTANT TO SUCCESS WITH GOALS: Google Analytics doesn’t tell you how your business is doing without some additional setup. You have to tell Google Analytics to keep track of what’s critical to your business – and you do this with goals. In Google Analytics, you have four ways to track goals: 1) URLs, 2) time, 3) pages/visit and 4) events. Here’s how to set up Goals.
“SHOW ME THE MONEY” WITH CONVERSIONS: Most of the time Conversion Rate is thought of in terms of e-commerce websites. But increasingly tools are making it ever more easy for you to track conversions of any kind. Form submissions (leads). Trial signups. Content consumption. Download Software. View support FAQ. And more. No matter what your website, you can start measuring “conversion rate”. It is the fastest way to the heart of why your website mostly exists.
Did this teach you how to use Google Analytics for killer insights? Are you ready to put analytics to work on your business?
Web analytics is not just a tool for measuring web traffic.
Off-site web analytics refers to the measurement of a website’s potential audience (opportunity), share of voice (visibility), and buzz (comments) that is happening on the internet as a whole. On-site web analytics measures a visitor’s behavior once on your website. This includes its drivers and conversions.
Taken together, web anlaytics provides a complete picture of your audience and their attitudes and behaviors toward your brand. Web analytics is the most valuable, useful, cost-effective and timely resource a business has to answers key strategy questions.
Google Analytics is the most widely used web analytics software. Google Webmaster Tools shows traffic for each keyword separately; it gives more information about website performance. There is even a Google Analytics Academy to learn all about how to use web analytics done online on the participant’s schedule. They’re all free to use so there’s no reason a company shouldn’t dedicate some time and attention to examining web analytics.
If you need more convincing, here are 37 key strategy questions web analytics answers.
WHO ARE OUR CUSTOMERS?
Who do we attract?
Who do we want to attract?
Who is visiting for the first time?
Who is returning for more visits?
What cities or countries are most people visiting from?
What search keywords are sending us traffic?
What percent of traffic comes from mobile devices?
Who are our most valuable segments?
Who is worth doing marketing efforts to based on their business potential?
Are we doing better or worse?
WHAT ARE THEIR BEHAVIORS TOWARD OUR BRAND?
What actions do people take?
Are they taking the actions we want?
How do people find us?
How do people travel through the site?
What sort of experience do we create for our users?
What percent of users view at least 3 pages per visit?
What percent of users remain on site for at least 3 minutes?
Where do our most active visitors come from?
Where do visitors click?
Where are our most valuable users coming from?
Who shares our content?
What content works best?
What percent of users comment on content?
Who recommends us to a friend?
What social networks and social media metrics are worth tracking?
What do they buy from us?
HOW DO FIND MORE PEOPLE LIKE THEM?
How do we find more people like the ones who are most valuable customers?
How long does it take for someone to decide to do business with us?
How do we know if our site is doing well relative to competitors?
How do we know if our marketing efforts are working?
How has advertising worked?
Was advertising worth it?
How can we identify the ideal marketing mix?
How do analytics help us understand how the business can make the most revenue and profits?
What key metrics should be used for Key Performance Indicators (KPIs)
What is the best way to measure ROI?
Do the answers to these questions matter to your business? Do they convince you to dedicate time and attention to web analytics? Does your company need to learn how to use web analytics better?