The Business of Database Marketing

Foreword   Arthur Middleton Hughes     xiii
Preface     xv
Fundamentals     1
The Early Days     3
The Beginning of Database Marketing     4
Enter PCs     8
Open Systems and ASPs     10
The Rise of CRM     11
Understanding Marketing Databases     14
Flat Files     14
The Relational Database Model     15
Indexing     18
Bit Mapping     18
Inverted Files     19
Do You Need a Marketing Database?     21
Setting Criteria     22
Benefits of a Marketing Database     22
Automated Merge/Purge     22
Automated Data Hygiene     24
Automated Data Enhancement     25
Frequent Updating     25
Increased Marketing Velocity     27
Better Selectivity and Segmentation     28
Campaign Automation     29
Event Triggers     29
Implementation of Business Rules     30
Automated Scoring     31
Management of Contact Frequency     32
Contact History     33
Results Tracking and Reporting     34
Data Mining     34
Reduced Demands on IT     34
Simplified Vendor Management     35
Database Marketing or CRM?     37
The Development of the Continuum     37
CRM and the Customer Experience     39
Why Database Marketing Matters     42
The Three Phases of CRM     43
In-House or Outsource?     46
Security Issues     46
Reasons to Outsource     47
Database Marketing Experience     47
Cost     48
Timely Completion     49
Security     50
A Security Checklist     50
Making It Work     53
Covering the Bases     55
Database Marketing Readiness Assessment     55
Involving Stakeholders     57
Orgaizational Experience     58
Reporting     58
Segmentation for Communication     60
Technology Requirements     61
Products and Priorities     63
Creating Compelling Offers     65
Convergence     65
Database Creation and Management     65
Aggregating Information     67
Data Organization      67
Identifying User Needs     68
Prospects in Your Database     68
Data Enhancements     69
Data Hygiene     70
Householding     71
Update Frequency     72
Campaign Development and Execution     73
Strategies for Segmentation     74
Testing and Measurement     74
Campaigns     77
Continuity Communications     78
Response Management     79
Response Handling     79
Tracking the Process     80
Modeling and Analytics     81
Making the Investment     82
The Three Stages of Database Marketing     83
Buying the Technology     84
An Alternate Approach     85
Enterprise Systems     87
Return on Investment     88
Cost/Benefit     89
Writing and Issuing RFPs     90
Problems with RFPs: From the Client's Point of View     90
Problems with RFPs: From the Vendor's Point of View     93
Problems with RFPs: On Both Sides of the Desk     94
Doing It Right     95
Data Hygiene     101
Typical Problems with Data      101
The Limitations of NCOA     103
Populating and Enhancing your Database     110
Customers     110
Data Elements: Relevant and Irrelevant     112
Making "Appends": Testing Outside Lists     114
Generating and Managing Leads     117
Leads and Prospects     118
Lists     119
Distributing Leads     121
Response Management     123
Understanding How Sales Are Made     124
The Challenges of Prospecting and Lead Follow-up     128
Tests, Measurement, Analytics, and ROI     131
Testing     131
RFM     134
Profiling     136
Modeling     137
Segmentation and Clustering     140
Assumption Marketing     144
Enterprise-Wide Control Groups     146
Measuring ROI     149
The "Magic Number" in Retention Measurement     150
Cost-Justifying a Launch     151
37 Best Practices     158
Technology     159
Right-Size the Technology Investment     159
Connect with Your CSRs     159
If You're Outsourcing, Personally Visit the Data Center      160
Database Management     161
Seek Out Axes to Grind     161
Include Prospects     161
Be Realistic about What Data You Need     162
Rank Responses     163
Manage Response Management     164
Analytics     164
Create an Enterprise-Wide Control Group     164
Set up ROI Measures in Advance     165
Find and Exploit Nuggets     165
Provide an Information Flow     167
Creative     168
Test for Breakthroughs, Not Nuances     168
Connect Analysts to Creatives     168
Get Past the Corporate Gatekeepers     169
Remember "WIIFM"     169
Turn Statistics into Key Selling Propositions     169
Contact Strategy     169
Sense and Respond     169
Cross-Sell in Sequence     172
Differentiate Yourself with Top-Tier Customers     172
Include "Soft Touch" Communications     173
Survey Customers     174
Surprise and Delight     175
Key Communications to Relationship Phases     176
Talk to the People Who Talk to the People     177
Make Your Offers Relevant     177
Fish Where the Fish Are     178
Segment by Market     179
Develop a Process for Strategic Planning and Stick to It     179
Resell Former Customers     180
Let the Customer Choose the Channel     181
Offer a Web Response option     181
Use Microsites     181
Drive Selection with Modeling and Segmentation     182
Test Timing     182
Pick the Right Person     183
Call Yourself up Some Time     183
The Role of the Internet     185
Why the Internet Matters     185
Uses of the Internet for Database Marketers     188
Providing Information     188
Testing     189
Taking Applications     189
Generating Leads     191
Distributing Leads     191
Direct Sales     191
Advertising     192
Offer an Internet Response Option     192
Use Microsites     193
Offer an Ongoing Information Flow     193
Field Sales Management     193
Recruiting     194
Customer Service     194
Establishing Community     195
Creating "Buzz"      195
Innovating an Entire Business Model     196
The Next Big Thing     201
The Power of Databases Marketing     201
Direct Mail List Acquisition     202
Duplication     205
The Effect of Business Silos     207
Timing Problems     208
Will It Work For You?     208
Getting It Done     209
The View from Both Sides of the Desk     211
Relationship Tips for Clients     212
Attention From Senior Management     212
Working With Your Account Team     214
Relationship Tips for Vendors     216
Quarterly Business Reviews     216
Put It In Writing     217
Add Value     217
Stay In Touch     218
Wrapping Up     219
The Ten Great Myths     221
The Future is 1:1     221
Technology Drives the Process     222
Database Marketing Transcends Brand     222
CRM Will Replace Database Marketing     223
Prospect Databases Can't Be Made to Work Economically     224
Consumer Data and Data Hygiene Are Commodities     225
Effective Analytics Can Be Automated     225
More Personalization Is Better     226
The Future Is Online     226
RFPs Are Required to Buy Marketing Services     227
Is the Sky Really Falling?     228
Privacy     229
Data Handling     230
Do Not Call     230
Overmailing/Overselling/Overmarketing     230
A Final Review: Major Dos and Don'ts     232
Database Creation and Management     232
Analytics     234
Contact and Relationship Management Strategies     235
The Internet     236
Glossary of Buzzwords     237
Index     244