The key to effective marketing is understanding the customer; this is where data-mining comes in. Data-mining is the use of sophisticated software and statistical expertise to extract patterns and relationships hidden in large databases - patterns that ordinary methods might miss.

Applications are limited only by the imagination, but can include the following:

- Churn modelling
- Market basket analysis
- Customer segmentation
- Risk profiling
- Demand forecasting
- Propensity modelling
- Campaign automation
- Direct marketing
- Experimental design

We work with an organisation to understand their customer base, which includes identifying different segments that are more or less likely to respond to a given offer. Given the competitive nature of modern business, and the danger of alienating customers by swamping them with irrelevant offers, it is important to use targeted marketing. The days of response rates of 2-3% are in the past; with the use of modern analytics response rates of 20-30%, or even higher, are common.