The 24 Essential Techniques of Database Marketing

While, immersing myself into the knowledge of CRM and Database Marketing, I wanted to share a great checklist Arthur Hughes provides in his Strategic Database Marketing book.  This list will help visualize the breadth and scope of this approach. At the same time, it will allow you to serve as a great keyword framework while you are building your informational library about the subject.

  1. LTV (Customer Lifetime Value) = Net worth of your customers, almost like ABC marketing segmentation
  2. RFM (Recency, Frequency, Monetary Analysis) = allows to predict the success of your promotional efforts
  3. Customer Communications = personalized customer communications based on the data, love this part!
  4. Appended Data = all the demographics, psyschographic data we get from “zip code profiles” providers
  5. Predictive Models = one can build based on item 4 and communications, helps to increase response rate and decrease attrition rate
  6. Relational Databases = form of the database that allows instant useful info to make marketing decisions, something you have to have set up right from the start!
  7. Caller ID = helps CRMs to do their magic = boding experience via instant info and response
  8. Web sites = helps your customers to experience your product/service, bond with it and provide their behavior pattern data for good purposes obviously, allows engage into conversations. Jeremiah has loads of nuggets in this area.
  9. Email = allows effective communication, leads to retention and increased sales. Allows to reach your customers, still does!
  10. Tests and Controls = use test groups to see the effectiveness of your customer loyalty programs
  11. Loyalty Programs = customers are delighted to participate in those! Airlines are a good example
  12. Business Intelligence Software = allows you to have “hands on” your marketing activities before, during and after, well – anytime
  13. Web Access = for your relational database for all functions within your company (management, CRS, sales, marketing, operations, etc.)
  14. Rented Lists = allows to get direct response (mail) data easily than you think
  15. Campaign Management Software = speeds up your execution phase from the planning to doing
  16. Address Correction Services = made modern database marketing possible
  17. Profitability Analysis = allows you to change your pricing and marketing strategies to increase your profits
  18. Customer Segmentation = allows to create useful segments based on demographics and behavior based on the actual data, helps to create targeting communications!
  19. Status Levels = allows to provide special services for special customers (Platinum, Gold, Silver)
  20. Multichannel Marketing = more sales wherever your customers show up
  21. Treating Customers Differently = profits come from retaining the Gold customers and encouraging others to move up the higher status levels
  22. NBP (Next Best Product) = powerful tool to determine why one group of your customers buys and the other does not. Sales people and CRM will appreciate the info
  23. Penetration Analysis = helps to direct sales force and make them more effective
  24. Cluster Coding = helps to identify who is buying and who is not, creative tool that allows to improve both marketing and sales!