Data Mining is the process of identifing patterns in large data sets using computers. This is largely done through databases and statistics for analysis purposes. The main aim of Data Mining is to discover new information from a set of data and turn it into a useful, readable, logical structure for someone.
Supermarkets, for example use data mining for analysis of customer purchasing habits - one US supermarket chain discovered that most consumers did their 'big shop' on a Saturday and only popped in for essentials midweek. Supermarkets can use this data to their advantage as it will mean they know when to put on promotions, and when not too.
This system is also used in customer loyalty card programmes - such as Sainsburys's Nectar Card or Tescos's Clubcard. The system can track consumers most bought items and send them relevant discount vouchers for example.
Telephone providers also use data mining in order to offer their customers different types of plans. For example, free weekend calls, or a business plan.
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