High Cardinality

High cardinality refers to data columns with values that are very unique and distinct. In the universe of business intelligence and data analytics, a high cardinality column has a lot of different possible values, kind of like a zip code or telephone number. For example, if you have a database with a column for customer IDs, and there are thousands of different customer IDs, that column would be considered to have high cardinality.

Dealing with high cardinality is important in data analytics because it can greatly affect how data is stored, organized, and analyzed. Columns with high cardinality can slow down database operations and make it harder to spot trends within the data. It’s like trying to find a needle in a haystack – with so many unique entries, identifying patterns or grouping data can be more challenging.

However, high cardinality data is often very valuable because it can provide detailed insights when analyzed properly. For businesses, understanding how to work with high cardinality data can lead to more personalized marketing strategies, improved customer segmentation, and better risk management among other benefits. It requires careful handling, but with the right tools and approaches, high cardinality data can be a treasure trove of actionable information.