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DataBase Marketing

The document discusses customer databases and database marketing. It defines a customer database as a collection of organized customer data used to develop marketing plans. Database marketing is the process of building, maintaining, and using customer databases to contact customers, complete transactions, and build relationships. Customer databases contain extensive customer information gathered from transactions, registrations, calls, and interactions. Companies analyze customer database information using data mining techniques to learn customer needs and behaviors to improve marketing.

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BILAL AWAN
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201 views3 pages

DataBase Marketing

The document discusses customer databases and database marketing. It defines a customer database as a collection of organized customer data used to develop marketing plans. Database marketing is the process of building, maintaining, and using customer databases to contact customers, complete transactions, and build relationships. Customer databases contain extensive customer information gathered from transactions, registrations, calls, and interactions. Companies analyze customer database information using data mining techniques to learn customer needs and behaviors to improve marketing.

Uploaded by

BILAL AWAN
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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CUSTOMER DATA BASE AND DATA BASE MARKETING

Customer Data-Base:

The Customer Database is a collection of customer data in an organized manner that is used by organizations
to develop a suitable marketing plan for a specific product or service.

This information is always up-to-date, available and actionable for lead generation, lead qualification, sale of a
product or service, or maintenance of customer relationships

Data-Base Marketing:

Database marketing is the process of building, maintaining, and using customer databases and other databases
(products, suppliers, resellers) to contact, transact, and build customer relationships.

Customer Database and Customer mailing list

Many companies relate mailing list with customer data base, but these are two different things.

Customer Mailing list:

A customer mailing list is simply a set of names, addresses, and telephone numbers

Types of databases

1. Customer database
2. Business database

A customer database contains much more information, accumulated through customer transactions,
registration information, telephone queries, cookies, and every customer contact.

 The consumer’s past purchases


 Demographics (age, income, family members, birthdays)
 Psychographics (activities, interests, and opinions)
 Media graphics (preferred media)

Business database contains:

 past purchases
 past volumes
 prices, and profits
 buyer team member names (and ages, birthdays, hobbies, and favorite foods)
 status of current contracts
 an estimate of the supplier’s share of the customer’s business
 competitive suppliers
 assessment of competitive strengths and weaknesses in selling and servicing the account
relevant customer buying practices, patterns, and policies
Data Warehouses and Data Mining:

Companies capture information every time a customer comes into contact with any of their departments,
whether it is a customer purchase, a customer-requested service call, an online query, or a mail-in rebate card.
These data are collected by the company’s contact center and organized into a data warehouse where
marketers can capture, query, and analyze them to draw inferences about an individual customer’s needs and
responses.

Data mining, marketing statisticians can extract from the mass of data useful information about individuals,
trends, and segments. Data mining uses sophisticated statistical and mathematical techniques such as cluster
analysis, automatic interaction detection, predictive modeling, and neural networking.

Example:

 How Facebook segments their user data according to first name, last name, email, phone number, date of
birth, gender, location, and interests. This allows Facebook to create personalized experiences for their
users which is very valuable to advertisers and marketers
 Another database marketing example is LinkedIn. LinkedIn has a customer database of nearly
660 million business professionals with monetization strategies such as LinkedIn Premium, Sales
Navigator, Talent Solutions, and most notably LinkedIn Ads.
 all social media networks are huge marketing database platforms

Upside of database marketing:

1. To identify prospects:
Many companies generate sales leads by advertising their product or service. The ads generally
contain a response feature, such as
 a business reply card
 toll-free phone number
The company builds its database from customer responses. It sorts through the database to identify
the best prospects, then contacts them by mail or phone to try to convert them into customers
2. To decide which customers should receive a particular offer:
Companies interested in selling, up-selling, and cross-selling set up criteria describing the ideal
target customer for a particular offer. Then they search their customer databases for those who most
closely resemble the ideal
3. To deepen customer loyalty
Companies can build interest and enthusiasm by remembering customer preferences and sending
appropriate gifts, discount coupons, and interesting reading material
4. To reactivate customer purchases:
Automatic mailing programs (automatic marketing) can send out birthday or anniversary cards,
holiday shopping reminders, or off-season promotions. The database can help the company make
attractive or timely offers
5. To avoid serious customer mistakes:
A major bank confessed to a number of mistakes it had made by not using its customer database
well.
 In one case, the bank charged a customer a penalty for late payment on his mortgage, failing
to note he headed a company that was a major depositor in this bank. The customer quit the
bank.
 In a second case, two different staff members of the bank phoned the same mortgage
customer offering a home equity loan at different prices. Neither knew the other had made
the call

Downside of data base marketing:

 Some situations are just not conducive to database management


 Building and maintaining a customer database requires a large, well-placed investment in computer
hardware, database software, analytical programs, communication links, and skilled staff
 It may be difficult to get everyone in the company to be customer oriented and use the available
information
 Not all customers want a relationship with the company
 The assumptions behind CRM may not always hold true

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