Database - Mercer University
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Transcript Database - Mercer University
Database Marketing
• Six Basic Assumptions
Past
is best predictor of future
Life Time Value (LTV) more important than any
single transaction
Customers more important than noncustomers
All customers are not created equal
Customers can be grouped (segmented)
based on their characteristics
Good prospects are like good current
customers
Database Design
and Maintenance
There are two main types with
different objectives and purposes.
Hierarchical vs Relational
• Single record
• Mulitiple records in
contains ALL info
• Excellent for high
volume processing
• Limitations on data
detail and revision
• Best used for
operations data
“Linked” tables
• Improved analytical capabilities
• “Infinite” detail
data accumulation
• Best used for
marketing data
See Exhibit 3-2, page 52
Match Codes Allow Merge/Purge
• Purpose:
Faster processing to ID
duplicates on two or
more LARGE files
• Example Address:
James E. Coleman
1840 Wentworth Drive
Montgomery, AL 36106
• Match Code:
AL6106CLE1840J75
• Explanation:
AL: state
6106: last 4 zip code
CLE: 1, 3 & 4 positions
from last name
1840: first 4 street num.
J:
first initial
7:
character count of
last name
5:
character count of
first name
What To Do With Duplicates?
• Eliminate from new lists so you don’t
pay for names you already have
• Eliminate from existing lists to
prevent duplicate mailings
• ID “multi-buyers”: people who buy
from numerous DM companies are
more likely to be good prospects
Database Maintenance Duties
• Nixie removal
Undeliverable
or “no forwarding address”
• NCOA file comparison
National
Change of Address from USPS
• Routine updating of record status
Old
data is expensive and misleading
• Security
Would
your competitors like to have this info?
Database Maintenance Duties
• DMA mail & telephone preference list
DM
companies should always drop these
names from their lists.
Telephone Preference Service, or
Direct Mail Preference Service
Direct Marketing Association
P.O. Box 9014
Farmingdale, NY 11735-9014
Email Preference Service: www.e-mps.org
FTC ‘Do Not Call’ list.
Customer Profiling
• The better you ID current good
customers, the better your
prospecting will be.
• Beware of the “equal effort over time
dilemma”
Certain
types of customers appear better
because your efforts concentrated on them in
the past.
Customer Profiling
• Internal: if you already have RFM,
demographic & psychographic data
• External: SMRB reports & profiles
• Enhancements: running your file
against external demo/psycho DB’s
• Environmental: census based
ZipCode info for consumers or SIC
code data for businesses