Benefits and Issues Surrounding Data Mining and its Application in the Retail Industry

Today with the advent of technology data has expanded to the size of millions of terabytes. For retail industries, customer’s data works as tracks for analysing their buying behaviour. How this data is maintained and used for an effective decision making in retail industry is discussed in this paper. This not only increases profit for companies but also poses a challenge in the field of data mining about how probably “Recommended for You” items are chosen by the customers and how likable is the platform or store according to the customer preferences. Clustering algorithm is used to segregate customer profiles. Business Intelligence and analytics work to bring best decision routes for marketing.