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T h e C u s t o m e r L o ya lt y S o l u t i o n
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Table 14-5 Cost of a Survey
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Direct mail Unit cost Cost for 50,000 Response rate Number of responses Registration rate Number registered Cost per lead $0.71 $35,500 1.42% 710 1.01% 505 $70.30 Email $0.12 $6,000 3.49% 1,745 1.95% 975 $6.15
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least a minute 60 times as long. Compare these two sentences: To take the 1-minute Iomega Quiz and enter to win a prize, click here. To take the 1-minute Iomega Quiz, go on the Web and enter www.msdbmdata/iomega/. Which is easier
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What Works
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Appending data to your customer le to learn your customers demographics and create a pro le Using the pro le to nd prospects that match the pro le of your best customers Asking customers to complete their own pro le Using a customer s pro le to customize and personalize that customer s Web experience Using a quiz on the Web to nd out about what customers want, and then offering it to them Comparing your customer pro les to the national average Using a model to improve your response rate on promotions
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What Doesn t Work
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Getting people to ll out long, boring pro le forms Assuming that the head of the household is the customer
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P r of i l e M a r k e t i n g
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Quiz
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1. Go on the Web and nd a company that asks you to complete your personal pro le. See what is good and bad about the way this company goes about it. 2. Figure out how you could use customer pro les in your business. How can you collect the data How will you give your customers an incentive to provide information 3. In the P&C case study, what was the cost per piece of the mailing a. $0.33 b. $0.43 c. $0.53 d. $0.63 e. None of the above 4. In the P&C case study, why didn t the P&C company select those with the highest revenue per sale a. This is a trick question: It did. b. The optimized group had higher total sales. c. The optimized group had higher response rates. d. Both b and c. 5. Why are the best responders not necessarily the best people to target in a mailing 6. After a mailing to 100,000 customers, six of them telephoned to say that they did not like the text of the mailing. On what basis would you repeat the same mailing, despite these phone calls 7. If you ask 400,000 people to complete a pro le and only 2 percent respond by doing so, on what basis could you say that the exercise was worthwhile 8. Could you use a Web quiz in your business Who would take the quiz What would be in it for them
H A P T E R
A Farewell to the Reader
hank you for making this journey with me. We have had some laughs, and, I hope, we have learned something that will be useful for our jobs. What have we learned
Database Marketing Works
After two decades, database marketing is alive and well. It is being used by thousands of companies throughout America, and to a certain extent throughout the developed world. It is highly accountable and can be measured. You can prove that what you are doing is working, making customers happy and making pro ts for your company. Here are some of the lessons that have emerged from 14 chapters of theory and 40 case studies: Database marketing is not the same thing as CRM. You can call it CRM, but that is rather like calling a terrorist a freedom ghter. CRM is aimed at making the right offer to the right person at the right time, based on massive amounts of data accumulated in a warehouse. No warehouse can hold the amount of data on the behavior of an individual that is needed if CRM is to deliver pro ts. The warehouse would need to know what the customer is thinking, what his values are, what he did yesterday, and what he wants to do right now. CRM is a nice idea that does not work in practice and
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