7 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 donít 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.


Melissa Data

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