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Data Mining: Purpose, Characteristics, Benefits & Limitations


To make the meaning of data mining easy, one can separate the words and try to understand the meaning better.

Here data mining can be taken as data and mining, data is something that holds some records of information and mining can be considered as digging deep information about using materials. So in terms of defining,

What is Data Mining?

Data mining is a process that is useful for the discovery of informative and analyzing the understanding of the aspects of different elements.

Data Mining Advantages Disadvantages

We can always find a large amount of data on the internet which are relevant to various industries. The term data is referred here as raw collection of stats and details, which is not sorted.

The same data if is organized and sorted then it turns out to be information, which can be used by us in various ways. This extraction of information from the raw data is another form of data mining.

Few other processes which include in data mining are,

  • Data Integration
  • Data Cleaning
  • Data Transformation
  • Pattern Evaluation
  • Data Presentation

The knowledge or information which is acquired through the data mining process can be made used in any of the following applications −

  1. Market Analysis
  2. Production Control
  3. Customer Retention
  4. Science Exploration
  5. Fraud Detection
  6. Sports
  7. Astrology
  8. Internet Web Surf-Aid

What Can Data Mining Do:

Data mining helps in analyzing and summarizing different elements of information. A mining process is a form wherein which all the data and information can be extracted for the purpose of future benefit.

1. It helps to identify the shopping patterns:

Most of the time while designing some shopping patters one might experience some sort of unexpected issues.

And to overcome and find out the actual reason behind that data mining can be helpful. Mining methods discover all the information about these shopping patterns.

Moreover, this data mining process creates a space that determines all the unexpected shopping patterns. Therefore, this data mining can be beneficial while identifying shopping patterns.

2. Increases website optimization:

As per the meaning and definition of data mining, it helps to discover all sorts of information about the unknown elements. And adding to that data mining helps to increase the website optimization.

As most of the key factors of website optimization deal with information and analyzation, similarly, this mining provides such information which can utilize data mining techniques to increase website optimization.

3. It is beneficial for marketing campaigns:

Most importantly, all the elements of data mining is dealt with information discovery and also in its summarization way.

Moreover, it is also beneficial for marketing campaigns because it helps to identify the customer response over certain products available in the market.

Therefore, all the working format of these data mining processes identifies the customer response through the marketing campaign, which can implement profit for the growth of the business.

4. Determining customer groups:

As it is explained earlier, data mining models help to provide customer responses from marketing campaigns. And it also provides informational help while determining customer groups.

These new customer groups can be initiated through some sort of surveys and these surveys are one of the forms of mining where different types of information about unknown products and services are gathered with the help of data mining.

5. It helps to measure profitability factors:

The data mining system provides all sorts of information about customer response and determining customer groups. Therefore, it can be helpful while measuring all the factors of the profitable business.

As these types of working factors of data mining, one can clearly understand the actual measurement of the profitability of the business.

Moreover, these data mining processes differentiate key factors between profit and loss elements of the business.

6. Increases brand loyalty:

These marketing campaigns use these mining techniques to understand the behaviour and habits of their own customers. And it also allows their customers to choose their brand of clothes which makes them comfortable.

Therefore, with the help of the data mining technique, one can definitely be more self-reliant when it comes to decision making as it provides most of the possible information about different types of brands available.

Purpose of Data Mining:

The main purpose of data mining process is to discover those records of information and summarize it in a simpler format for the purpose of others.

Therefore, understanding the purpose of the mining process is a matter of information.

1. It increases customer loyalty:

As most of the information about data mining covers up all the detailing of the discovery of information.

Similarly, when it comes to marketing campaign this data mining process handles all customer satisfaction and customer loyalty regarding issues. Therefore, at the end of the line these data mining process benefits those who are in a similar field of work.

And finally, the marketing industry deals with data mining creating an increased level of customer loyalty.

2. It identifies hidden profitability:

At the starting level of this data mining process, one can understand the actual nature of work, but eventually, the benefits and features of these data mining can be identified in a beneficial manner.

One of the most important elements of these data mining is considered as that it provides the determination of locked profitability.

Therefore, this data mining provides clear identification of hidden profitability so that one can overcome the risk factor in their business.

3. Minimizes clients involvement:

Most of the time while gathering information about certain elements, products and services, one used to depend on their clients for some additional information.

But these data mining processes change everything and that is because of the help of such inclusion of technology in the data mining process.

Therefore, the end conclusion is that all the information discovered through this data mining process is initiated through information technology.

4. Customer satisfaction:

One of the main nature of working which is involved in the mining techniques are from their informational matters.

Most of people seek for others’ help while making some decisions. But it is not always easy to follow anyone suggestion. And that is why with the help of data mining one can be confident enough to make their own decision.

Moreover, it gains the trust of its customers with such kind of efforts.

Characteristics of Data Mining:

Data mining service is an easy form of information gathering methodology wherein which all the relevant information goes through some sort of identification process.

And eventually at the end of this process, one can determine all the characteristics of the data mining process.

1. Increased quantities of data:

In earlier days, the data mining system can be determined with the help of their clients and customers, but in today’s date, one can acquire any number of information without the help of those clients.

Moreover, after this kind of revolution in the mining system, it also added one more problem and that is large quantities of work.

With the help of this information technology, one can acquire a large number of information without any extra burden or trouble.

2. Provides incomplete data:

Most of the people provide incomplete information about themselves in some of the survey conducted with the help of data mining systems.

Therefore, people ignore the value of their information and that is why they provide incomplete information about themselves in those surveys conducted for the benefit of the mining systems.

Moreover, these mining systems changed the perspective of people and because of that, people fear the exchange of their personal information.

3. Complicated data structure:

Data mining is a form wherein which all the information is gathered and incorporated with the help of information collection techniques. These information collecting techniques are more of manual and rest are technological.

Therefore, most of the understanding and determination of these mining can be a bit complicated than other structures of information technology.

Data Mining Applications:

Data mining is mostly used by many of the big gaints in the information technology sector and also some small industries by making use of their own techniques. Some of the popular domains are,

  1. Market Analysis and Management
  2. Corporate Analysis & Risk Management
  3. Fraud Detection

1. Market Analysis and Management:

The following mentioned are the various fields of the market where the data mining process is effectively used,

  • Customer Profiling
  • Finding customer requirements
  • Cross-market analysis
  • Target marketing
  • Determining customer purchasing pattern
  • Provides summary information

2. Corporate Analysis and Risk Management:

The following mentioned are the various fields of the corporate sector where the data mining process is effectively used,

  • Finance Planning
  • Asset Evaluation
  • Resource Planning
  • Competition

3. Fraud Detection:

Frauds and malware is one of the most dangerous threats on the internet. It is almost a kind of crime that is increasing day after day. The fraud detection process can be mainly used through credit card services and telecommunication.

With the help of the services most of the important information like duration of the call, location, the time and day etc can be acquired which helps in big time.

Benefits or Advantages of Data Mining Techniques:

There are several types of benefits and advantages of data mining systems. One of the essential matters of these mining creates a complete structure of analysis of mining techniques.

1. It is helpful to predict future trends:

Most of the working nature of the data mining systems carries on all the informational factors of the elements and their structure.

One of the common benefits that can be derived with these data mining systems is that they can be helpful while predicting future trends. And that is quite possible with the help of technology and behavioral changes adopted by the people.

2. It signifies customer habits:

For example, while working in the marketing industry one can understand all the matters of customer behaviour and their habits. And that is possible with the help of data mining systems.

As these data mining systems handle all the information acquiring techniques. It is helpful in keeping track of customer habits and their behavior.

3. Helps in decision making:

There are some people who make use of these data mining techniques to help them with some kind of decision making.

Nowadays, all the information about anything can be determined easily with the help of technology and similarly, with the help of such technology one can make a precise decision about something unknown and unexpected.

4. Increase company revenue:

As it has been explained earlier that data mining is a process wherein which it involves some sort of technology to acquire

some information about anything possible. And this type of technology makes things easier for their profit earning ratio.

As people can collect information about the marketed products online, which eventually reduces the cost of the product and their services.

5. It depends upon market-based analysis:

Data mining process is a system wherein which all the information has been gathered on the basis of market information.

Nowadays, technology plays a crucial role in everything and that casualty can be seen in these data mining systems. Therefore, all the information collected through these data mining is basically from marketing analysis.

6. Quick fraud detection:

Most parts of the data mining process is basically from information gathered with the help of marketing analysis. With the help of such marketing analysis, one can also find out those fraudulent acts and products available in the market.

Moreover, with the help of it one can understand the importance of accurate information.

Limitations or Disadvantages of Data Mining Techniques:

Data mining technology is something that helps one person in their decision making and that decision making is a process wherein which all the factors of mining is involved precisely.

And while the involvement of these mining systems, one can come across several disadvantages of data mining and they are as follows.

1. It violates user privacy:

It is a known fact that data mining collects information about people using some market-based techniques and information technology. And these data mining process involves several numbers of factors.

But while involving those factors, data mining system violates the privacy of its user and that is why it lacks in the matters of safety and security of its users. Eventually, it creates miscommunication between people.

2. Additional irrelevant information:

The main functions of the data mining systems create a relevant space for beneficial information.

But the main problem with these information collections is that there is a possibility that the collection of information processes can be a little overwhelming for all.

Therefore, it is very much essential to maintain a minimum level of limit for all the data mining techniques.

3. Misuse of information:

As it has been explained earlier that in the data mining system the possibility of safety and security measure are really minimal. And that is why some can misuse this information to harm others in their own way.

Therefore, the data mining system needs to change its course of working so that it can reduce the ratio of misuse of information through the mining process.

4. Accuracy of data:

Most of the time while collecting information about certain elements one used to seek help from their clients, but nowadays everything has changed. And now the process of information collection made things easy with the mining technology and their methods.

One of the most possible limitations of this data mining system is that it can provide accuracy of data with its own limits.


Finally, the bottom line is that all the techniques, methods and data mining systems help in the discovery of new creative things. And at the end of this discussion about the data mining methodology, one can clearly understand the feature, elements, purpose, characteristics, and benefits with its own limitations.

Therefore, after reading all the above-mentioned information about the data mining techniques, one can determine its credibility and feasibility even better.