Data Mining

What is 'Data Mining'

Data mining is a process used by companies to turn raw data into useful information. By using software to look for patterns in large batches of data, businesses can learn more about their customers and develop more effective marketing strategies as well as increase sales and decrease costs. Data mining depends on effective data collection and warehousing as well as computer processing.

BREAKING DOWN 'Data Mining'

Grocery stores are well-known users of data mining techniques. Many supermarkets offer free loyalty cards to customers that give them access to reduced prices not available to non-members. The cards make it easy for stores to track who is buying what, when they are buying it, and at what price. The stores can then use this data, after analyzing it, for multiple purposes, such as offering customers coupons that are targeted to their buying habits and deciding when to put items on sale and when to sell them at full price.


Data mining can be a cause for concern when only selected information, which is not representative of the overall sample group, is used to prove a certain hypothesis.

RELATED TERMS
  1. Data Warehousing

    The electronic storage of a large amount of information by a ...
  2. Bitcoin Mining

    Bitcoin mining is the process by which transactions are verified ...
  3. Loyalty Program

    A rewards program offered by a company to customers who frequently ...
  4. Batch Trading

    An accumulation of orders that are executed simultaneously. Batch ...
  5. Hypothesis Testing

    A process by which an analyst tests a statistical hypothesis. ...
  6. Batch Header Record

    A standard record of information regarding the transfer of a ...
Related Articles
  1. Technical Indicators

    Key Financial Ratios to Analyze the Mining Industry

    Discover some the most important financial ratios used by investors and analysts to evaluate companies in the metals and mining industry.
  2. Investing Basics

    The Biggest Risks Mining Stocks Face

    In this article, we will look at risks shared by major and junior mining stocks and what they mean to investors.
  3. Economics

    How Big Data Has Changed Marketing

    Big data has enabled marketers to enhance their customer engagement and customer retention strategies by providing insight into behavior and thoughts.
  4. Investing Basics

    The Most Popular Bitcoin Mining Software

    Success at mining bitcoins depends on the combination of time, knowledge, computer hardware and the complementary software.
  5. Investing Basics

    Mining Stocks: Understanding Feasibility

    In this article, we'll look at the feasibility study as it relates to mining stocks and what it is actually telling investors.
  6. Investing Basics

    Choosing Between Major and Junior Mining Stocks

    In this article, we'll compare the juniors and the majors and look at what each can add to your portfolio.
  7. Investing Basics

    What is Bitcoin Mining?

    How does Bitcoin get released into circulation?
  8. Savings

    Why Do Companies Print Coupons?

    Coupons save customers money, but there's also a lot in it for the company.
  9. Forex

    Is Bitcoin Mining Still Profitable?

    Recent changes in technology and the creation of professional mining centers individual miners are asking themselves, is bitcoin mining still profitable?
  10. Stock Analysis

    Get Ready for a Different Gold Frenzy

    Junior miners are likely to be in the radar of gold giants for potential mergers and acquisitions, as the big boys aim to boost production as quickly as possible, writes Shirley Won of The Globe ...
RELATED FAQS
  1. What main factors affect share prices in the metals and mining sector?

    Discover the primary factors that influence share prices of companies in the metals and mining sector and how companies can ... Read Answer >>
  2. Why should a growth investor consider the metals and mining sector?

    Examine facts and trends about the metals and mining sector and the world economy that make metals and mining stocks attractive ... Read Answer >>
  3. What are examples of popular companies in the metals and mining sector?

    Discover what some of the most popular companies are with investors in the metals and mining sector, specifically gold and ... Read Answer >>
  4. What is the long-term outlook of the metals and mining sector?

    Take a look at the long-term outlook for the metals and mining sector as reported by the industry agency council of the World ... Read Answer >>
  5. What developed countries have the greatest exposure to metals and mining?

    Learn about the three developed countries with the largest exposure to the metals and mining sector: Canada, Australia and ... Read Answer >>
  6. What are the main benchmarks for tracking the performance of the metals and mining ...

    Discover how benchmarks are useful to investors and a variety of indexes and ETFs that can be used as benchmarks to track ... Read Answer >>
Hot Definitions
  1. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  2. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  3. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  4. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  5. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
  6. Weighted Average Cost Of Capital - WACC

    Weighted average cost of capital (WACC) is a calculation of a firm's cost of capital in which each category of capital is ...
Trading Center