Life event-driven marketing (EDM) can be a useful tool in unearthing new opportunities to find or serve customers. Very different from an RFM-driven, transaction-based approach, EDM seeks to find changes in prospect and customer circumstances that signal a break from past behaviors.
In B-to-B marketing, relationships can be complex. Some contacts buy, while other contacts only influence a purchase decision. Sales often take months to complete, and must go through a multiple step process. Individuals work in teams at a company location, and that location may be part of a larger corporation. Useful and necessary marketing and communication efforts are required to support the entire selling process, but many of those communications cannot be tracked on their own. They might be directed at influencers, or might occur very early in a selling process that may or may not be complete months later. Faced with such complexity, B-to-B
Why building and using a House File Inventory is the key to B-to-B data-driven marketing success In B-to-B marketing, relationships can be complex. Some contacts buy, while other contacts only influence a purchase decision. Sales often take months to complete, and must go through a many step process. Individuals work in teams at a company location, and that location may be part of a larger corporation. Useful and necessary marketing and communication efforts are required to support the entire selling process, but many of those communications cannot be tracked on their own. They might be directed at influencers, or might occur very early in a
Anyone familiar with database marketing is aware of the cultural divide between creative types and data types. It’s as if the two groups speak a different language. While maximum response and ROI are shared goals, how the two groups go about understanding the audience to craft campaigns that achieve these goals often is completely different. Data analysis typically is targeted around one goal: selecting the “best” names, the names that will bring the highest response. Different audience segments may be selected, but in the end, a name either is selected or it’s not. The challenge is left for the creative specialists to fit the
Effective housefile segmentation begins with sound strategy and defined goals. The ability to market to customers with different needs, in different ways, requires what marketers call housefile segmentation. But what you many not realize is that housefile segmentation isn’t so much a technique or a tool as it is the result of goals, strategy and research coming together. Housefile segmentation fits into a strategy to grow the customer base, increase loyalty, and grow share of customer. In some ways, it drives the strategy, in other ways it reflects the strategy. For example, an organization with a goal of rapid growth would look more at
Segmentation Is More Than a Tactic—It’s Also a Strategy. Using statistical techniques to segment customers is an effective tactic, but how you market to these segments is a strategy. Rather than operating in a vacuum, statisticians and marketers can work together to not only predict behavior, but change it. For many direct marketers, state-of-the-art segmentation means using the database to determine, with the greatest possible accuracy, which customers will respond to a given offer. They often point with pride to a statistical technique that selects the best 20,000 names from the database. These modeling techniques typically are employed in a “black box” fashion,
by Alan Weber People have bet their careers on their ability to build and manage a successful marketing database. Unfortunately, many of those bets were lost. If knowledge and behavior-based marketing is so effective, why don't more database efforts succeed? Rarely does a marketing database fail for purely technical reasons. Most efforts have the hardware and software to be successful. So why do so many fail? Most marketing database efforts that fail do so for at least one of three reasons: 1. People assume that with better knowledge of their customers, they will do the same things more efficiently. In reality, they
by Alan Weber Those in direct marketing have always been different from those in other industries because they share data. At some level, every industry measures results and tests products, offers and media. Few industries, however, are willing to share customer data for the common good. It is not difficult to understand why some marketers are apprehensive about sharing data. Look at the reaction in the general press when Double Click bought Abacus and attempted to combine Web and catalog behavior. The Supreme Court has recently taken away states' rights to sell driver's license and motor vehicle data, a veritable fountain of information for
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 Alan Weber Business-to-business marketing and business-to-consumer marketing are very different. Communications are different, databases are different and sales methods are different. Most companies consider themselves to be one or the other. But the division between the two markets isn't absolute. Many consumer marketers also sell to businesses, whether they recognize it or not. It is not uncommon to begin a marketing database analysis comparing consumers based on demographic data, and find the biggest customers aren't private consumers at all. In most cases where a company sells to both, the database, communication efforts and selling efforts are geared toward consumers. This often means the
by Alan Weber Profitable customer segmentation requires treating different segments differently. If different segments are treated the same, what is the point of having different segments? Knowing why and how to treat each customer segment requires understanding of the secrets in marketing data. The most valuable data for marketers is buried in their own databases. The problem is that marketers may not know how to look at their own data to unlock the secrets that will help them communicate more effectively with their customers and prospects. Finding the secrets is half the challenge. The other half is knowing how to use them
by Alan Weber There is a revolution going on in database marketing, and it's not about making computers go faster. It is about making people smarter. Based on the idea that bringing decision makers closer to the knowledge in the database will enable better decisions, radical changes are now being made in how marketing decision support is done. Instead of computers that think for them, decision makers want the information brought to their desktop, so they can make the best judgement calls possible. At one time, database marketers judged service bureaus based on what they took away—problems with data storage, programming and other technical