Database Marketing

Database Marketing explained

Start with a decision: which customers need information about a changed service, or which enquiries fit an offer? This determines required data, ownership and updating. A manageable, well-maintained dataset can be sufficient. A complete profile across every channel is neither a prerequisite nor automatically useful.

Reliable data needs clear matching, traceable origins and rules for changes. Check duplicates and conflicting details before combining records. Distinguish people, companies, contracts and contact permissions. An existing purchase record does not automatically permit every subsequent advertising use.

For existing customers, RFM analysis can organise past purchases by recency, frequency and monetary value. It initially describes previous behaviour. Which group benefits from which information must be assessed for the offer concerned. Infrequent purchases may fit the product cycle; high revenue says little about profitability without considering costs.

Connect the segment with an understandable message and suitable next step. Record who actually belonged to the activity and which observation period applies. Where possible, assess additional effects with a suitable comparison group. Responses from the addressed group alone do not prove that the activity caused the difference.