Database Marketing: A 24-point Checklist
Using a database and online analytical software, marketers can do their own penetration analysis. What percent of sales do you have in each ZIP code, SIC code, income level or age group? This is a versatile tool that can help you to locate retail stores, place advertising and direct your sales force.
Claritas and other data solutions firms have divided U.S. (and Canadian) consumers into 66 different clusters with catchy names and similar spending habits. In many industries, using clusters with penetration analysis can help you identify who is buying your products and who isn’t.
The airlines started it: platinum, gold and silver. Status levels based on customer value have spread to other industries. Customers now understand their status, and work to move up to a higher level to earn special benefits, rewards and services. In a democracy, it is an egalitarian method of customer differentiation that assists in building customer loyalty and company profits.
If you are not familiar with and using all 24 techniques in your work, you may not be getting the level of customer retention, cross-sales, upsells, referrals and profits that others enjoy.
Arthur Middleton Hughes is vice president/solutions architect at KnowledgeBase Marketing, a full-service data solutions firm based in Richardson, Texas. He can be reached at email@example.com or at (954) 767-4558.