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Data Mining for Direct Mail – Best Practices

By: Andrew Glover
April 16, 2020

The goal of data mining is to explain the past and predict the future. Data mining helps you extract information from massive sets of data. You mine the knowledge from that data, and then you can apply your learnings to your direct mail campaign. By using the techniques mentioned below, you can boost and refine your marketing strategy and stand out from the crowd.

What Is Data Mining?

Data mining is when you are looking for hidden or potentially useful patterns in massive data sets. The goal of data mining to discover unsuspected or previously unknown relationships within the data. This technique is a skill that uses machine learning, statistics, artificial intelligence, and database technology. You can use the insights gathered from data mining to improve your marketing projects.

Data Mining Techniques 

There are several data mining techniques you can implement. Here are a few that may help with your next direct mail project.

Clustering

Cluster analysis lets you identify a given user group according to shared features in the database. These features include age, geographic location, education level, and so on. Clustering is a great data mining technique for marketing because you can segment the database and send direct mail to the right target audience for a specific offer or service. The variable combinations are limitless and make cluster analysis more precise according to the search requirements.

Personalizing direct mail helps increase your return on investment. After using a clustering data mining method, you can use the information gathered to send out a campaign using variable data printing (VDP). VDP allows you to personalize your marketing campaign and provide more attention-grabbing pieces for your targeted audience.

Classification 

You can use classification analysis when retrieving essential and relevant information about data and metadata. This method of data mining helps classify data in different classes and concepts, and the report allows you to recognize patterns inside a database. It’s an effective solution to help improve your marketing strategy performance. You can delete any redundant information and create improved archives.

You can compare classification to weather forecasting. You are predicting whether your marketing endeavor is ready to send. Before you start a project, you need to check its feasibility. Using a classifier, you can predict class labels such as safe or risky for adopting the plan and further improving it.

Predicting and Regression

Predicting is a data mining technique that uses other methods like trends, sequential patterns, clustering, classification, and more. This method analyzes past events in the right sequence for predicting a future development. You are saving time and staying informed by identifying concealed recurrences.

Regression models are one of the more straightforward yet powerful analysis techniques for understanding relationships in your data and making predictions from them. One common type is a linear regression, which seeks to define a linear relationship. You are looking for a linear relationship between a set of independent variables (predictors) and their corresponding dependent variables (targets). Linear regression models are usually used for forecasting and modeling a time series with continuous variables.

The Benefits of Data Mining 

Data mining provides many benefits, including helping your organization receive knowledge-based information. Using data mining allows you to take the guesswork out of your marketing plan.

You can use the mined data before building a direct mail strategy, which will provide you with better results than a randomly designed marketing approach. Data mining is very cost-effective, and it’s an efficient solution compared to other statistical data applications. Using data mining is also a speedy process, making it time-efficient.

Data Mining with Valtim 

Valtim started as a data management facility. We have expertise in both Microsoft SQL Server and MySQL, including multiple programming languages supporting these data back-ends. We can help your organization manage its data and assist you in finding the best way of enhancing your direct mail after analyzing the data.

By using your data and our variable imaging methods, we can create unique personalized pieces that speak to your audience and increase your return on investment. Direct mail loses its impact when it’s too generic. Using our proven strategies and expertise, we can provide your organization with the data analysis that presents you with the most advantageous use of your data.

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