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Database Driven Direct Marketing

Database Driven Direct Marketing. Chapter 3. Customer Database Defined. Customer Database- a customer database is a list of customer names to which additional information has been added in a systematic fashion. Objectives of a Customer Database. To get to know customers better

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Database Driven Direct Marketing

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  1. Database Driven Direct Marketing Chapter 3 Contemporary Direct Marketing - Chapter 03

  2. Customer Database Defined Customer Database- a customer database is a list of customer names to which additional information has been added in a systematic fashion Contemporary Direct Marketing - Chapter 03

  3. Objectives of a Customer Database • To get to know customers better • To sell different products or services to existing customers • To introduce new products or services • To distribute information about an upcoming event or sale • To introduce new employees • And more…much more!! Contemporary Direct Marketing - Chapter 03

  4. Types of Data To CollectFor A Customer Database • Customer’s Name • Address • Telephone Number • E-Mail Address • Transaction Data Contemporary Direct Marketing - Chapter 03

  5. Recency/Frequency/Monetary • Evaluates customers on mailing lists in reference to their transactions over time *20 points per each variable *weights will vary *See example in text Contemporary Direct Marketing - Chapter 03

  6. Match Codes • An abbreviated name/address record • Allows each record to be matched with other records • A match code is generated for each name on the list Example AddressDerived Match Code Ann Stafford 82301SAF930AEX8A3 9330 West Arlington Rd Alexandria, VA 22301 Contemporary Direct Marketing - Chapter 03

  7. Merge/Purge • A process using match codes to identify and delete duplicate names and addresses • Keeps house lists from being duplicated • Can remove names that requested no solicitations Contemporary Direct Marketing - Chapter 03

  8. Database Maintenance • Lists are perishable • Constant control and maintenance is required • Includes identifying and eliminating any duplicate records • Three categories of database maintenance Contemporary Direct Marketing - Chapter 03

  9. 3 Categories of Database Maintenance 1. Nixie removal 2. Change of address 3. Record status updates Contemporary Direct Marketing - Chapter 03

  10. Nixie Removal Defined – mail that has been returned by the Postal Service because it is undeliverable as addressed Contemporary Direct Marketing - Chapter 03

  11. Change of Address • Should be requested through the Postal Service (NCOA) • Promotions that are mailed out to improper addresses may result in a financial lost Contemporary Direct Marketing - Chapter 03

  12. Record Status Updates • Transaction data • Marital status • Deaths Contemporary Direct Marketing - Chapter 03

  13. Database Security • Proper Storage • List Marking – “salting” or “seeding” • Discouraging Theft Contemporary Direct Marketing - Chapter 03

  14. DM Uses of a Database • Profile Customers • Retain Best Customers • Thank Customers For Their Patronage • Capitalize on Cross-Selling/Continuity Selling • Develop A Customer Communication Program • Perform Marketing Research • Generate New Customers …and MORE!! Contemporary Direct Marketing - Chapter 03

  15. Database Enhancement Defined – Refers to adding and overlaying information to customer records to better understand and describe the customer Contemporary Direct Marketing - Chapter 03

  16. Reasons To Enhance a Database 1. Learn more about the customer 2. Increase the effectiveness of future promotional activities targeted to current customers 3. To better prospect for new customers that are similar to current customers Contemporary Direct Marketing - Chapter 03

  17. External Geographic Address Telephone Number Gender of Head of Household Length of Residence Number of Adults at Residence Number of Children at Residence Income Occupation Marital Status Make of Automobiles Owned Internal Age Gender Income Marital Status Family Composition Street Address E-Mail Address Length of Residence Size of Household Type of Housing Data Enhancement Contemporary Direct Marketing - Chapter 03

  18. Lifetime Value of A Customer • Customers should be viewed as an investment • Without customers there is no business • If a marketing effort results in the acquisition of new customers who will generate value over time the action is desirable Contemporary Direct Marketing - Chapter 03

  19. Chapter 3 Case Smithfield Foods Contemporary Direct Marketing - Chapter 03

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