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7 Deadly Sins of Database Marketing
Think you might be a soulless, sinful database
marketer? Accused of living a dirty data-filled
life? Redemption is a mere click away. Find out what
it takes to clear your marketing conscience.
Jeff Hassemer, director of product strategy, data
management solutions for Abacus, talked about the
seven deadly sins in database marketing. Hassemer
made some good points during the webinar session,
which was presented by Multichannel Merchant and
DIRECT magazine.
During the session, Hassemer 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.
Here’s his list of the seven deadly sins of database
marketing:
1. Using your operational system as a marketing
database. Why is this a sin? Hassemer pointed out
that operational systems are designed to get data
in, not out. He also noted that marketing
information is usually scattered across multiple
systems and not easily attainable or integrated. How
should you avoid this sin? Hassemer said you should
update frequently and design your data mart for
access to the data you need.
2. Relying on an incomplete view of your customer.
Why is this a sin? Hassemer noted that marketers can
make bad decisions when they don’t have all the data
in one place. How should you avoid committing this
sin? Hassemer advised making 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.
3. Not using a sound response allocation strategy.
Why is this a sin? Because customers are responding
to marketing offers via multiple channels, Hassemer
noted.
4. Not using your database for exploratory analysis.
Why is this a sin? Hassemer pointed out that answers
are not always readily available to the marketer and
that all assumptions must be validated. He said
planning time for analysis is was key in avoiding
this sin.
5. Failing to adequately differentiate your customer
base. How does this happen? Hassemer said this
situation occurs when customer preferences and
behaviors are not well understood when developing
messages and offers.
6. Neglecting your data hygiene and integration.
Hassemer explained that this occurs when database
systems are not properly maintained. He pointed out
several ways 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.
7. Developing your contact strategies without
adequate information. This occurs when marketers
fail to track how often they contact clients through
multiple channels, which can result in overlapping
contacts and wasted marketing dollars. One way to
avoid this sin – keep testing.
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