Database marketing, part 1 roadmap to success

Database Marketing, Part 1 | Roadmap to Success

Database Marketing, Part 1 Roadmap to Success


Presented By

Andy PappasVP, Database Marketing & Analytics –

Relevate

Tom GuernonDirector of Sales – Relevate


Business Issues

Copyright © 1996 United Feature Syndicate, Inc.


What We Will Cover

What is Database Marketing?

Goals of Database Marketing

Why do you need Database

marketing?

Roadmap to Success

SmartProfile Giveaway

Preview of Part 2 & 3


What is Database Marketing?

Database:

A collection of data and information about customers and/or

prospects that affects what and how a marketer will sell to

them.

Database Marketing:

A customer-based, information intensive, long-term

methodology that uses the Database as the basis of all on-

going marketing efforts.


Database Marketing Value Proposition

Breadth of functionality - Integrated descriptive & predictive analytics, multi-

channel campaign management, and reporting.

Ease of use - Expands user audience, reduces training requirements &

makes staff productive sooner.

Accessibility - Delivers insightful and actionable customer data to the

fingertips of entire staff…from anywhere.

Scalability and Performance – Architected to perform optimally with large

databases, frequent updates and heavy usage.


Roadmap to Success

Understand the Process

Data Organization

Data Hygiene &

Enhancement

Reporting

Campaign Strategy

Choosing a Solution


Roadmap to Success


There are 3 main processes within the overall database

environment.

Data Preparation

Pulling together all relevant internal information to house in the database

Individual contacts

Transaction history

Solicitation history

Understanding where within the organization this data can be found and how it can be accessed on an ongoing basis

Knowing how to use it once it has been structured

Allows you to better target/segment your customer/prospect universe

Allows you to more efficiently answer day-to-day questions and requests

Campaign Management

Being able to communicate with your contacts at the right time, via the right channels, with the proper frequency while providing the desired message/offers

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Process Involved


Reporting and Analytics

Close the loop on campaigns by understanding who responds

Allows for better segmentation in future campaigns

Producing KPIs to run your everyday business

Seasonality results

Product Category results

RFM results

Etc.

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Process Involved Cont.


Roadmap to Success

Database Marketing, Part 1 | Roadmap to Success15

How is Data Typically Organized?


Roadmap to Success


Data Hygiene & Enhancement

Why is hygiene needed?

Over 12% of the U.S. population moves every year

30% of Email addresses change every year

A recent Experian study found that 75% of companies waste an average of 14% of

revenue on bad data

What can be done?


There is not Hard and Fast rule as to how frequently a database should be

updated. It is really industry and marketer specific.

In general, transaction related tables (i.e. sales) should be updated more

frequently than not (often done weekly).

Other tables can be updated on the same schedule or less frequently.

For example a product table might be updated quarterly or annually for

some companies, but might be updated monthly for others.

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Update Frequency


Roadmap to Success


Reporting

Production reports

Address Hygiene

Merge/purge

Campaign Creation Reports

Determine available universe for each desired segment

Determine how Global or Specific suppressions or filters may change the segment quantities

Determine estimated ROI per segment by using historical/expected response rates and average sales figures

Campaign Performance Reports

Determine the actual Response Rates, $ Sales and ROI by Segment

Compare to Projections

Compare to Historical Results

Database Performance Reports

Year to Year comparisons

Product Category Comparisons

Customer Segment comparisons


Roadmap to Success


Campaign StrategyThis too will be covered in a later session but in general, using all the

information at your fingertips (both internal and external data) to make

decisions:

• Who to solicit

• When to solicit them

• How to solicit them (which channel)

• How often to solicit them

• What types of offers to provide

And then via the response match back attribution process you will know who

responded and that information will help determine future marketing campaign

decisions


Roadmap to Success


What Solutions is Right for you?

We have been discussing the importance of having of good processes in place before

considering any database solution. Once these have been researched and reviewed,

the question becomes:

• Do we build this ourselves in-house or do we outsource it?

The main drivers in this decision begin with the Internal Competencies.

Can proper Address Hygiene be performed internally?

Can proper data matching within and among data tables be handled internally?

Do you have data enhancement capability for better segmentation and or contact

strategies

Demographics and Psychographics

Phone Append

Email Append


What Solutions is Right for you Cont.?

In-House Solutions

Pro – Designed to fit current needs

Con – Typically not scalable

Con – Timing considerations, as internal resources have many requests and demands on their plate.

Vendor Managed Solution

Pro – Continual improvements to platform

Pro – Customizable to fit your ever-changing needs

Pro – Can be customized at a lower cost

Pro – Typically user friendly for marketing teams

Con – Lose internal control


Roadmap to Success

Understand the Process

Data Organization

Data Hygiene &

Enhancement

Reporting

Campaign Strategy

Choosing a Solution


Upcoming Database Marketing Webinars

Part 2:

Marketing Analytics & Reporting

Part 3:

Campaign Management and Automation


THANK YOU AND

PLEASE STAY IN TOUCH!

Email us at [email protected] or call 800-523-7346

Database marketing, part 1 roadmap to success

Marketing

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