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61 Cards in this Set
- Front
- Back
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The Customer Marketing Database
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A comprehensive collection of interrelated data serving multiple applicaitons, allowing timely and accurate on demand retrieval of relevant data, and having a data management system independent of application
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How is each customer database interrelated?
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Each customer record is connected to every other one so that customers who have something in common can be picked out as special lists or as part of an analysis
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What are the multiple applications of the customer marketing database?
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Database is used by marketers for analysis, communications and servicing?
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List some internal data sources for the customer database:
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Personal customer data
transaction data (purchases) communication history data (the campaign and the responses) New contact channels product registration/warranties credit card details subscription details questionnaires contests events sampling |
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What are some external customer database data sources?
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List purchases
data building schemes (geodemographic) Lifestyle databases (profiling) |
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The typical customer record should be designed to capture what sort of information?
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Contact and geographic information
demographic information profile information marketing information behavioral information |
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What is the four step approach to database management?
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Manage the sources
Manage data capture manage the database manage the applciation |
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What are the standards of data capture?
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Verification (enter it twice)
Validation De-duplication Merge/purge (same customer 2 files) |
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What are the three elements of managing the database? (the third step in the four step approach to database managment) And, what are the major concerns for each?
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Updating --- Timely Data
Auditing --- Trace data back to original Archiving --- Policy |
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What are the three elements of managing the application? (the fourth step in the in the four step approach to managing the database)
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Sources
Output (selecting, analyze, report) Campaign Responses |
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What are three types of lists (external databases)
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House
Response Compiled |
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Who are the major list participants?
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Users
Owners Managers Compilers Brokers Service Bureaus |
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What are the measurements of results for lists (external databases?
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Key codes on promotional pieces
Different Toll Free Numbers Hotline Names identified and Tracked |
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What do customer databases have that lists do not?
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All around, they have more information, such as:
Purchase History Demographic information Social information |
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What is a geodemographic Analysis built from?
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Built from census data purcahsed and processed by third parties
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What two types of data do geodeomgraphic analysis mix?
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Geographic and demographic data
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What do profilers do to compile geodemographic analysis?
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use cluster analysis to place households into groups by age, social class, income, etc.. They then allocate descriptions of each postal codes based on dominant profiles
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Where do Lifestyle Databases come from?
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Product registrations, questionnaires, trade shows, subscriptions, contests, etc.
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What type of data is in a lifestyle database?
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Attitudinal data, opinion data, purchase data, brand preferences and interests
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What are the three components of the 3 legged school?
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Database - Media - Offer
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What are the steps to DM Campaign Planning?
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Set the objectives for the campaign, determine the DM Mix (between database, offer and media) than design a detailed test program
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When determining the DM Mix in planning the DM Campaign, what are the important actions for the database?
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Segment the database based on existing customers, and decide on the final target markets
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When determining the DM Mix in planning the DM Campaign, what are the important actions for deciding the offer?
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Decide on the product/price proposition
Decide on incentive approach Decide on Timing Develop creative platforms |
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What are the two key performance indicators for a DM Campaign?
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Measurements of Heft and Measures of Rate
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What is measures of heft?
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One of the key performance indicatiors for a DM campaign, include: Number of contacts, orders, revenue, direct costs, marketing costs, profile, etc.
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What is measures of rate?
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One of the performance indicators for a DM Campaign, include:
ROI (return on investment) CPR (cost per response) CPA (cost per acquisition) CPM (cost per thousand) OPM (orders per thousand) |
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What is Standard Industrial Classification Coding System (SIC)?
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The Basis for statistical data used by governments, trade associations and busienss
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What does NAICS stand for?
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The North American Industry Classification System. It builds upon the SIC system
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What are some identifiable groups or segments that DM users can use to target better?
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Demographics
Geographics Lifestages Psychographics or Lifestyle Behavioral Affinity or Interest Groups |
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What is the value of segmentation?
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Huge volumes of information can be derived from large databases meaning more reliable results. Segmentaiton reflects actual behaviour, not projected behvaiour. Once Segments are created, each customer can be precisely allocated to a group. Direct strategies can be affiliated to an individual level.
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What are the characteristics of Demographics?
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Gender
Age Ethnicity Marital Status Family Size HH Income Occupation Social Class Education |
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What are the different location classifications marketers can use to segment geographically?
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Region
Province City Postal Code Neighborhood Trade Area |
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How many houses does a FSA cover in a postal code?
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7500 households
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How many households does a LDU cover in a postal code?
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Approximately 100 households
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What are some of the different life stages dm marketers can segment by?
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Post Secondary Students
Single, No Children Married, No Children New Nesters, Children <6 Full Nesters Youngest Child <6 Empty Nesters (children gone) Retired couples Solitary Working Retiree Retired Solitary Survivor |
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What are typical needs or activities of post secondary students?
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Electronic Gadgets
Clothing Entertainment |
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What are some needs or ativities for New Nesters?
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Baby food
Toys Furniture New Homes |
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What are some needs and activities for empty nesters?
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Travel
Cruises Retirement Planning |
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Who are innovators?
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Customers receptive to new ideas. They buy upscale niche products and services
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Who are Thinkers?
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Seek out information to make decisions, buy durability, functionality and value in products
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Who are Believers
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customers that are slow to change. Technology adverse. They buy familiar products and establish brands.
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Who are Achievers?
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Customers with goal oriented lifestyles centering on family and career. They buy premium products that show success to peers.
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Who are Strivers?
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Trendy and fun loving customers with little discreitionary income. They buy stylish products to emulate those with greater material wealth
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Who are Experiencers?
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Active and impulsive customers who take risks, spend on fashion,socializing and entertainment
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Who are Makers?
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Practical and self sufficient customers who spend time with family and close friends. They buy value products rather than luxury products
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Who are survivors?
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Customers with vary few resources. They buy products and services for safety and security, often discounted. They are brand loyal.
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What is the Pareto Principle?
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20% of your customers provide 80% of your profit
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What is Customer Lifetime Value?
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A forecast that projects how much gross profit will ultimately be made from a customer
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What is Allowable Marketing Spend?
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A simple calculation that tells us how much we can invest in an individual
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What are some segmentation applications?
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Using Purchase behavior to segment by customer value
Use purchase behavior to forecast lifetime value Use purchase behavior to segment by product need and to assess product/market strategy Maximize Response USe profile data to target new customers accurately |
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What is the basic assumption when using profile data to segment to target new customers and prospects?
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New customers will have a similar profile to existing customers. Therefore, by understanding the profile of your best customers you can find more just like them.
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What techniques are best to set budgets?
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Lifetime Value analysis and Available Market Spend analysis
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Which techniques are best for understanding customer value?
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RFM analysis and Lifetime value analysis
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Which technique is best to target spend and maximize ROI?
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RFM analysis and modeling techniques
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What information is required to do an LTV analysis?
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The Number of years a customer buys from the company. The percentage of customers remaining loyal to the company, and the amount spent annually and the cost of delivering those annual amounts
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What does an RFM analysis stand for?
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Recency/Frequency/Monetary
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What is a Cluster Analysis
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The profiling of similar cusotmers. It is used for initial modeling techniques but does not predict. It helps product development, targeting and market mix decisions.
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What is a neural network?
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Artificial intelligency that replicates a human pattern recognition process using a computer. As you refresh results, it 'learns' and extrapolates future outcomes
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What is a CHAID analysis?
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a Chi-Squared automatic interaction detector. It usually runs before regression analysis. DM'ers intuitively pick the independent variables that will affect responses. The CHAID analysis splits customers into segments according to market potential
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What is the process to a CHAID Process?
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Compare record of responders vs non responders
Determine which variable best explains the diffirences Split into two segments or cells Break each segment down again by variables Continue splitting segments until not significant anymore |
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What do regression coefficeints do?
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Tehy explain customer response (the dependent variable) against other variables in the database to identify a reason for responding
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