Database Marketing Solutions
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Data Reporting and Analysis
What is Database Marketing?
Database marketing is a form of direct marketing using databases of customers or potential customers to generate personalized communications in order to promote a product or service for marketing purposes.
Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications. As a consequence, database marketers also tend to be heavy users of data warehouses, because having a greater amount of data about customers increases the likelihood that a more accurate model can be built.
Database marketing emphasizes the use of statistical techniques to develop models of customer behavior, which are then used to select customers for communications. As a consequence, database marketers also tend to be heavy users of data warehouses, because having a greater amount of data about customers increases the likelihood that a more accurate model can be built.
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A book store is going to have a sale on computer books. Instead of mail a postcard to the entire customer list, it mails the postcard only to customers who have purchased computer books in the past. The result of that targeting effort will be reduced marketing costs and increased return on the investment.
A toy company is about to introduce a new line of Hello Kitty product. The company selects two lists; people who have purchased Hello Kitty product in the past, and people who haven’t from its database. They design a special introductory offer for past Hello Kitty product buyers and send it to all of them. Then they send a special ‘first time buyer’ offer to just part of that list of non-buyers to see if their offer works. If it produces good results, they will send the offer to the rest of the list. If not, they will either save the money or design a new offer and test again.
By analyzing your marketing database you determine that your best customers meet certain identifiable criteria, say married couples with children. On the mailing list sign up page on your web site, you ask people to indicate if they are married or have children, thereby identifying them as likely prospects to become good customers. Further, you rent a prospect mailing list and limit the selection to married couples with children as a way to target your prospecting efforts more accurately.
A sporting goods company has a web site on which people can sign up to receive special offers. At the same time, people can indicate their areas of interest – soccer, camping, tennis, etc. They can also indicate a preference for receiving offers by mail or email. At the beginning of camping season, the sporting goods company selects four different lists:
Four different marketing campaigns are designed, implemented, and the results are measured for effectiveness. Everyone has received offers that interest them (camping) using the delivery method (mail or email) they prefer. There is no “junk mail” in this effort, and marketing dollars have been utilized very efficiently. The chances for a profitable marketing campaign have been maximized.
A book store is going to have a sale on computer books. Instead of mail a postcard to the entire customer list, it mails the postcard only to customers who have purchased computer books in the past. The result of that targeting effort will be reduced marketing costs and increased return on the investment.
A toy company is about to introduce a new line of Hello Kitty product. The company selects two lists; people who have purchased Hello Kitty product in the past, and people who haven’t from its database. They design a special introductory offer for past Hello Kitty product buyers and send it to all of them. Then they send a special ‘first time buyer’ offer to just part of that list of non-buyers to see if their offer works. If it produces good results, they will send the offer to the rest of the list. If not, they will either save the money or design a new offer and test again.
By analyzing your marketing database you determine that your best customers meet certain identifiable criteria, say married couples with children. On the mailing list sign up page on your web site, you ask people to indicate if they are married or have children, thereby identifying them as likely prospects to become good customers. Further, you rent a prospect mailing list and limit the selection to married couples with children as a way to target your prospecting efforts more accurately.
A sporting goods company has a web site on which people can sign up to receive special offers. At the same time, people can indicate their areas of interest – soccer, camping, tennis, etc. They can also indicate a preference for receiving offers by mail or email. At the beginning of camping season, the sporting goods company selects four different lists:
- customers that have purchased camping equipment or indicated an interest in camping and prefer email offers
- customers that have purchased camping equipment and prefer offers by mail
- prospects that have indicated an interest in camping and a preference for email
- prospects that have indicated an interest in camping and a preference for mail
Four different marketing campaigns are designed, implemented, and the results are measured for effectiveness. Everyone has received offers that interest them (camping) using the delivery method (mail or email) they prefer. There is no “junk mail” in this effort, and marketing dollars have been utilized very efficiently. The chances for a profitable marketing campaign have been maximized.