5 key strategies.
With all the hype about database marketing and relationship marketing these last few years, it's easy to lose sight of the real, practical ways a database can help you understand your customers and drive marketing and sales programs.
Not sure where to start? Consider the following strategies for implementing database marketing recommended by Tucker Chicago, a marketing and communications agency.
1 NEW CUSTOMER ACQUISITION. Identifying and communicating with high potential prospects is a goal of most marketers. The segmentation tools allow you to focus on prospects that are "heavy users" or that meet predetermined criteria. Database marketing can be utilized to identify new customer "gains" anti to track trends in new customer activity. Finally, use your database to target and manage prospect communication, marketing and sales programs.
2 CUSTOMER PENETRATION. Are you the sole supplier to your top 25 customers? If not, what is your "account penetration" level by customer? Use database marketing to help identify penetration by comparing transaction data to total customer purchases--whether the data is actual forecasted or derived. In addition, modeling "ideal" product mix by customer type will identify cross-sell and up-sell opportunities.
3 CUSTOMER RETENTION OR REACTIVATION. Database marketing can help identify lost and dormant customers to be reactivated, as well as compute lifetime value. It can then be used to implement loyalty building strategies including continuity or "point" programs, customer recognition (i.e., thank yous) and other value-added marketing programs.
4 MEASURING PROMOTIONAL RESPONSE. Tracking the results of marketing, sales, advertising and communications programs is possible by capturing customer/prospect response and transactions data in the database. By coding and sorting the database, it is possible to test alternative programs or offers and to carefully measure those test results to continually improve your efforts.
5 CUSTOMER INTELLIGENCE. Database segmentation gives you another view of who your customers are. In addition, often customer records will include unlimited text entries. Real-time updating and remote access to this information gives sales and marketing an insider's view of whom they are trying to reach.
For more information on database marketing applications, contact Neil Brown, senior marketing director, or Robert Tucker, president, Tucker Chicago, at (708) 882-4224.
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|Title Annotation:||database marketing|
|Date:||Nov 1, 1994|
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