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Deadly Sins of Database Marketing
Jeff Hassemer, director of product strategy, data
management solutions for Abacus, noted that
companies fail at database marketing because they
tend to miss some key elements in their marketing
approach. He said those who fall short of realizing
sufficient ROI are those that lack focus and fail to
plan for and execute strategies. Hassemer discussed
the seven deadly sins in database marketing, and how
to avoid them, during a webinar session presented by
Multichannel Merchant and DIRECT magazine.
Sin #1. Using your operational system as a marketing
database. Operational systems are designed to get
data in, not out. Marketing information is usually
scattered across multiple systems and not easily
attainable or integrated. Update frequently and
design your data mart for access to the data you
need to avoid this sin.
Sin #2. Relying on an incomplete view of your
customer. Marketers can make bad decisions when they
don’t have all the data in one place. How could you
avoid this sin? Make sure you are getting data
representing all points of customer interaction,
collect data at all points of interaction, match and
consolidate the data and ensure that the privacy
policy is consolidated across all channels.
Sin #3. Not using a sound response allocation
strategy. Customers are responding to marketing
offers via multiple channels.
Sin #4. Not using your database for exploratory
analysis. Answers are not always readily available
to the marketer and that all assumptions must be
validated. Avoid this sin by planning time for
analysis.
Sin #5. Failing to adequately differentiate
(segment) your customer base. This situation occurs
when customer preferences and behaviors are not well
understood when developing messages and offers.
Sin #6. Neglecting your data hygiene and
integration. This occurs when database systems are
not properly maintained. To avoid this sin: develop
a plan for ongoing data hygiene during the update
process; ensure that all data is run through the
process and business rules properly applied; and
regularly inspect and report on data quality.
Sin #7. Developing your contact strategies without
adequate information. This sins happens when
marketers fail to track how often they contact
clients through multiple channels, which can result
in overlapping co.
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