How Data Mining Can Help You Dig the Nuggets Out of Your Business Imagine having a rare and valuable art collection and keeping it locked in the closet. Now think of data practices. Same situation. Marketers spend millions of dollars a year to gather and store large quantities of data that are never seen by the human eye. Other companies spend a great deal of money to run reports, graphics and analysis to show to marketing and sales personnel, but are unable to transform these expenditures into day-to-day actions. Data is merely words and numbers without meaningful actions attached. That is why data mining—extracting
Never before have marketers had such a wealth of marketing tools at their disposal: unique information sources, innovative database platforms, advanced analytics and multichannel delivery vehicles. With such a variety of tools, how should marketers leverage their database to reveal new opportunities to gain optimal results? You can maximize your ROI by developing a customer contact strategy that answers three key questions: 1) Who should I contact? 2) What channel should I use to contact them? 3) When should I contact them? The answers to these questions are in your database. They represent a contact-strategy plan that uses all the resources in
Elements of a Successful Outsourced Solution Outsourcing CRM solutions is a growing phenomenon that is generating a good deal of interest. For the purposes of this article, outsourced CRM solutions are defined as marketing automation applications that may include: hosted marketing databases, campaign management, lead generation/management, reporting and/or data mining. These applications may be hosted singly or in a turnkey solution. The benefits of outsourcing a CRM solution can be substantial, both in terms of revenue enhancement and cost reduction. Typically, marketers see benefits accrue slowly in the first few months after implementation, as the new technology and processes are thoroughly learned and integrated
Have you ever seen a Web site sign-up form with separate boxes to enter city, state and ZIP code, but only a single line for address? The Web designer made things simple and fast for the visitor. Unfortunately, the marketer is then left with an unusable address. Historically, businesses have compartmentalized for efficiency. And this is one reason why database marketing isn’t easy. Unless you can control the focus, another department’s objective may become your problem. The value of your database rests on small things. Many of your larger purposes will depend on how well your addresses can be matched up to external data.
How to Anticipate Customer Behavior with Analytics Know your customers and give them what they want—this is the fundamental principle of marketing. While simple in theory, it is challenging to put into practice. Short of mind reading, it’s difficult to know what’s on a customer’s mind today, or anticipate what he or she may need or want tomorrow. The challenge doesn’t stem from lack of customer data. Through every response, customer contact, event, transaction and Web site hit, customers and prospects give information about themselves. Databases are chock-full of these useful tidbits, and call centers and other customer-management systems also are overflowing with details
Last fall, Frost Bank invested in an aggressive deposit growth strategy with a series of new checking account products. The year-long campaign kicked off mid-October with a free checking account program—a first for this Texas-based bank. Creative for the campaign, which included in-branch signs, promotional handouts and a direct mail piece, played on Frost’s 135-year history as a trusted financial institution in Texas. Instead of mailing to particular Zip codes based on branch locations—a strategy often practiced by banks—Frost started digging into its customer database. With the help of Alcott Routon, a direct marketing agency based in Nashville, TN, Frost began to develop a
By Jack Schember During the past 12 years I moved four times in Southern California—from Mission Viejo to Lake Forest to Long Beach to Laguna Niguel. My career also took me to new locales, from Santa Ana to Dana Point and Rancho Santa Margarita. You guessed it: I'm like millions of Americans who don't stay in one place for too long. So if you're a marketer trying to keep track of my whereabouts, best of luck! The U.S. Postal Service says 43 million of us pick up and move every year. Many of us will take a few minutes to file a change-of-address notice
To understand how pervasive an issue data quality is within a direct marketing organization, think back to the old TV commercials: "BASF—We make the things you buy better." As Trish Brothers, product marketing specialist at Firstlogic Inc., La Crosse, WI, explains, "Whether it's marketing activities, marketing results or data mining, data quality makes it better." As amazing as it may seem, the simple problem of duplicate records is still the number-one data-quality issue. "But it (a dupe) is really a symptom of how well you can match your existing data," Brothers says. For instance, she says, pointing to this writer's name as an
In a previous article, ("Segmentation Secrets," Target Marketing, Sept. 1999, pp. 58-62) we examined some of the secrets that are typically uncovered when reviewing marketing data. In this article, we will look at the secrets for the more experienced marketer.
by Christine A. Smiley Imagine as you walk by your favorite department store that you impulsively purchase this season's trendiest shoes and wear them home. But you soon realize that shoes are very uncomfortable, and they quickly find a permanent home in the spare closet. You wish you had spent more time going to different stores to compare prices, styles and overall fit. Fortunately, an investment in a pair of worthless shoes may go unnoticed. But companies looking to make a substantial investment in demographic data want to be sure that the purchase will add value to their marketing decisions over time. Even with