Data mining is changing the way we do business. As business owners, we have access to an increasingly powerful set of tools for collecting, warehousing and analyzing enormous data sets. Businesses in every sector are using these tools to leverage data, draw insights, and make critical business decisions.

This, in turn, is helping business owners uncover new opportunities for growth. Evidence suggests that many of these businesses are finding their opportunities with the help of third-party data mining providers. According to Fortune Business Insights, the market for “big data analytics” is growing at an incredibly rapid pace. Analysts predict the data mining market will swell from $307.53 billion in 2023 to $745.15 billion by 2030, representing a 13.5% rate of growth. 

Businesses large and small are outsourcing their data mining needs to experienced BPO services. And many are reaching new heights of growth and profitability as a result of these partnerships.

Below, we take a closer look at ways that businesses are growing with the help of third-party data mining providers.

5 Ways Businesses Are Using Outsourced Data Mining to Grow

Today, data mining is seen as an essential part of an effective business strategy. Businesses are actively using the insights drawn from big data analytics to better forecast financial performance, understand customer behavior, create lead generation, and more.

The following are five ways that businesses are outsourcing their data mining needs in order to drive growth:

1. Predictive Analytics for Sales Forecasting

With data mining, you can use existing sales data in order to project future sales trends. Data mining often employs predictive analytics based on historical sales data, market trends, and other relevant variables so that you can better anticipate demand, manage your inventory levels, and make informed pricing decisions.

Many businesses outsource these functions to third-party providers. According to Deloitte’s Global Outsourcing Survey, 75% of companies who use external IT providers do so for support with data analytics. The resulting insights are helping businesses reduce wasted capital on unneeded inventory, improve the efficiency of their supply chain management strategy, and allocate labor for maximum productivity. 

2. Customer Segmentation and Targeting 

Data mining can be used to improve your understanding of your own customer base. Analyze key data points drawn from customer behavior in order to better understand the unique needs, preferences, and consumer habits exhibited by different segments of your customer base.

For instance, data mining can allow you to observe customer behavior on your website including traffic sources, time on page, bounce rate, conversion rate, and more. You’ll have a greater ability to hone in on the things that are working and that things that aren’t on your website. 

As you come to understand these distinct customer behaviors, you’ll have a refined ability to target specific customer segments with unique messaging, specialized offers, and more. Likewise, as you deepen your understanding of your customer base, you improve your precision at lead generation. 

Third-party data mining services can be particularly effective at helping your business match your product offering to a well-researched pool of potential clients. For instance, TechSpeed worked closely with a company specializing in software systems for hair salons to build a comprehensive and targeted database of prospective leads. 

The resulting database–a master list of hair salons in key geographic locations along with contact information, business details, name, address, revenue, website, and social media links–proved a powerful tool for the client’s sales team. Using data mining to facilitate lead generation can sharpen the focus of your sales efforts and improve your conversion rates. 

3. Optimizing Marketing Campaigns

In addition to helping you better understand your customer base, data mining can refine your ability to engage this customer base. Many businesses are turning to third-party providers to help infuse digital marketing strategies with actionable data. Data mining has become an increasingly essential part of the marketing process, giving businesses a far better ability to measure the effectiveness of existing market campaigns.

Metrics such as click-through rates, conversion rates and customer engagement can help your business identify the messaging, channels, and campaigns that are yielding the best outcomes. This knowledge gives you the ability to allocate your marketing budget with far greater precision. 

Outsourcing these tasks to a qualified BPO provider can help you optimize your marketing approach without the costs of recruiting, hiring and training an in-house digital marketing team. A third-party provider can also provide an important layer of quality assurance, helping to tidy up your CRM databases and ensure that the data within are accurate and up to date. 

As a result of this effort, your marketing campaigns can be more optimally targeted, more effective at messaging, and more efficient at moving leads through your sales funnel. In short, data mining can help you maximize the ROI on your marketing spend. 

4.  Building Internal Databases

Refining your internal databasing strategy can improve interoperability between departments, optimize supply chain management, and refine project bidding and delegation procedures. But it can also be a costly and complicated undertaking. A third-party data mining provider can help your firm aggregate data from a wide range of sources in order to create a single, user-friendly, and actionable resource for reliable data.

For instance, TechSpeed worked with a client in the manufacturing sector to create a master database of manufacturing parts. Drawing and aggregating data from an exhaustive selection of parts catalogs, TechSpeed provided its clients with a dynamic resource for bidding out manufacturing projects with speed and efficiency. 

By entering into a BPO partnership, the client gained access to a valuable data-driven resource without the cost and complexity of building it alone.

5. Managing Big Data 

A growing number of businesses have turned to third-party providers for help managing their data needs. Companies rely on increasingly massive and complex sets of data to make informed decisions and gain a competitive edge. Managing this “big data” often demands the support of experienced BPO services.

This is why, according to Deloitte’s Global Outsourcing Survey, 76% of responding firms outsource their IT needs to a third-party provider. A BPO provider like TechSpeed can work with clients to build, maintain, and facilitate access to consolidated databases containing large sets of data. 

With the right BPO partner, you can organize and centralize your company’s big data in a single database. This concentration gives you the power to leverage your data for maximum value. 

Why Outsource Your Data Mining Needs

The data mining tools available to us are increasing in number and power. However, implementation of data mining technology can be costly and disruptive. Moreover, this technology is continuously evolving. 

Businesses who implement these tools in-house face the challenges of training, adoption, and constant adaptation. In contrast, businesses who outsource their data mining needs gain access to sophisticated tools as well as personnel who are experienced at leveraging these tools for maximum insight. 

Partnering with a BPO provider who offers data mining experience and capabilities can help your business seize opportunities for greater profitability, scalability, and long-term growth. 

Leading BPO providers like TechSpeed offer comprehensive data mining services so that you can make business decisions based on precise, accurate, data-driven insights. Schedule a consultation today and start making sense of your big data.