Chapter 2- Building Databases, Selecting Customers and Managing Relationships Flashcards
What is the definition of Customer Database ?
A customer database is a list of customer names to which the marketer has added additional information in a systematic fashion.
Why is the Customer Database so important ?
- The heart of all direct and interactive marketing activities.
- The key to developing strong customer relationships and retaining customers.
What are the Primary 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
- To keep customers satisfied and happy
What are the characteristics of Highly Satisfied Customers ?
- Tend to be more loyal customers
- Generate more profits over their lifetime of patronage
What are the Reasons Why Loyal Customers Generate More Profits ?
- Increase their spending over time
- Cost less to serve than new customers
- Generate word-of-mouth advertising or referrals
- Are less price sensitive than new customers
What are Types of Sources Data To Collect To Build A Customer Database ?
- Customer’s Name
- Address
- Telephone Number
- E-Mail Address
- Demographics
- Psychographics
- Past Purchases (Transaction Data)
What is Database Maintenance: 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
- Can identify “multibuyers”
What is The Need for Database Maintenance ?
- Lists are perishable
- Constant control and maintenance is required
- Includes identifying and eliminating any duplicate records
- Three categories of database maintenance activities are needed
What are the three Categories of Database Maintenance Activities ?
- Change of Address investigations
- Nixie removal
- Record Status updates
What is Change of Address ?
- Should be requested through the U.S. Postal Service (National Change of Address Service - NCOA)
- Promotions that are mailed out to improper addresses may result in a financial lost
What is Nixie Removal ?
Defined – mail that has been returned by the Postal Service because it is undeliverable as illegible addresse
What is the description of Record Status Updates ?
- Transaction Data
- Marital Status
- Deaths
What is Database Security ?
- Information Privacy
- Proper Database Storage
- Listing Marking -“salting” or “seeding”
- Direct Marketers must safeguard their customer database and discourage theft.
What is Common Uses of a Customer 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
- Send Customized Offers
What is Performing Database Analytics ?
Data Mining
- Defined: The process of using statistical and mathematical techniques to extract customer information from the customer database to draw inferences about an individual customer’s needs and predict future behavior.
- Online Analytical Processing (OLAP)
