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Becoming customer-centric is seldom an achievable goal. For the last decade, marketers have talked about shifting their company from being product- and brand-centric to being customer-centric. Don t sell products. Find out what customers want to buy and sell them that. This is a wonderful idea, but few companies are doing it. If we were really to become customer-centric, we would segment our customers and create a manager for each segment. We would give these managers greater authority than that given to brand or product managers. In most cases, this does not work. The compensation system within a company is very dif cult to arrange. If the Silver Segment manager does a good job, many of his customers will become Gold, and he will lose them. How do you give him an incentive to do that Before you mouth platitudes about becoming customer-centric, think it through. See if you can make it work on paper. It won t. Forget it, and do a good job of database marketing within your current organization.
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Database marketing is a method of getting incremental increases in retention and sales when sales are conducted primarily through other channels, but it is also much more than that. It is a way of making people happy. People like to buy products and services. They like to establish personal relationships with their suppliers. They like to be recognized, thanked, and chatted with. They like to receive wanted communications. You can do all this with database marketing using the Web, phone, and direct mail. You cannot do these things with mass marketing. Merchants used to recognize customers and communicate directly with them in small retail stores, but most of the companies using database marketing today are not proprietors of small retail stores. What successful database marketing does is to bring back the close personal relationships that used to exist between customers and local stores and that have been lost as our country and economy have grown. In doing database marketing well today, you are making the world a happier, more satisfying, and better place to live. And you will be making an honest living doing it.
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n the months ahead, you will need to stay abreast of the new developments in our industry. Here are some ways of doing this.
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National Center for Database Marketing, two conferences per year, www.the-dma.org. Direct Marketing to Business, www.dbmshow.com. Other DMA conferences: Net marketing, brand, and others, www.the-dma.org.
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DM News, www.dmnews.com. Target Marketing, www2.targetonline.com. Direct magazine, www.primediabusiness.com. iMarketing magazine, www.imarketingnews.com.
Visit Web Sites
www.dbmarketing.com
Copyright 2003 by Arthur Middleton Hughes. Click Here for Term of Use.
H o w t o K e e p U p W i t h D ata b a s e M a r k e t i n g
www.computerstrategy.com www.1to1.com www.gartner.com
Read Books
The Complete Database Marketer, by Arthur Middleton Hughes (New York: McGraw-Hill, 1996). Strategic Database Marketing, by Arthur Middleton Hughes (New York: McGraw-Hill, 2000). The Loyalty Effect, by Frederick Reichheld (Boston: Harvard Business Press, 2001). Loyalty Marketing, the Second Act, by Brian Woolf (Greenville, SC: Teal Books, 2002). Customer Speci c Marketing, by Brian Woolf (Greenville, SC: Teal Books, 1998). Data Mining Cookbook, by Olivia Rud (New York: Wiley, 2000).
Exchange Information
I am going to make a request of you as a reader. If you are using any of the techniques in this book in your work and you have a wonderful example of success, could you contact me at dbmarkets@aol.com and let me know about it I would like to publish your success in an article and perhaps a later book. When we share our experiences in this way, database marketing becomes more and more successful as a technique, and I get to write more books.
Get Help
Many companies will help you to build your database or send emails. One that I can highly recommend that you consult is www.computerstrategy.com.
Answers to Quizzes
1
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. (c) Treating all customers alike (a) Customer communications (e) 0.4 percent (d ) Marketing strategy (a) Those customers in priority A and priority B (b) The resources available to devote to the best customers will be too small. (d ) On the computer holding the database (c) It made innovative use of the Web. (d ) Those who do not get any of the test communications (e) Not a good way to recruit new customers who last
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