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she will ignore the communications, leave her gold card behind when she shops, and refuse to become loyal. Too many companies have ignored that principle and, as a result, have failed to succeed in database marketing.
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How do you touch a customer s life using a database There are many ways, some of them so simple that we overlook them. When I y into San Francisco, check into a Hyatt hotel, and push the button for room service, the response is, Yes, Mr. Hughes. What can I get you to eat I have been in this hotel for less than 20 minutes, yet down in the kitchen they already know and use my name! This is possible because Hyatt, like most other hotels today, has Caller ID on its internal hotel telephone system. When you push that button in your room, the Caller ID goes to the database that Hyatt created when you checked in and pulls up the information, Arthur Hughes, Room 1202 on the screen so that room service can call you by name. This is database marketing. It is what the old corner grocers used to do, and it is now made possible by modern technology used in a creative way. You are 2000 miles from home, yet people know you and recognize you. It makes you feel great! Caller ID, of course, is not just for hotels. Customer service departments throughout America are using it to recognize customers when they make repeat calls. With this technique, before a call is answered, the database showing the customer s complete purchase history, demographics, and preferences is brought up on the customer service rep s screen, so that he can respond, Mrs. Webster. So nice to hear from you again. How did your granddaughter like that sweater you gave her last October This is the kind of thing the old corner grocer used to say, and we can say it today. But there is a new twist: Using cookies, we are able to personalize our Web sites so that customers get the same type of personal greeting when they return to Amazon.com, Barnes & Noble, Staples, Of ce Depot, and hundreds of other Web sites. Database marketing today has techniques that make its promise come alive.
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There are scores of different examples in the pages of this book. The principles are the same, but the methods have changed considerably in the past 15 years: When database marketing began, major databases were built on a mainframe. Today they are built on a server using Oracle or SQL Server. In the beginning, most databases were maintained by the information technology (IT) department or a service bureau and could not be accessed directly by marketers. When access was available, it was by terminals linked to the database by telephone lines. Today, marketers using PCs access databases over the Web. Data used to enter the databases in batch mode as keypunchers copied customer responses received through the mail. Even telemarketers entered data onto temporary disks, which were later used to update the mainframe database in batch mode. Today customers place their orders and update their pro les on the Web, through a Web page connected with a database on a server. Many telemarketers also work directly with live data on the same server. Database reports used to be produced monthly by programmers and sent to the users in hard copy. Today, marketers have a menu of reports on their screens, which they can run every day and print from their desktop PC printers. In the past, to select customers and prospects from a database, marketers would send detailed memoranda to the programmers. Upon receipt of these memoranda, programmers would write computer programs to select the desired records and send reports on the results to the marketers by fax. The process used to take a couple of weeks. Today, using E.piphany and other advanced applications, marketers select their own records for promotions using their PCs through the Web, without the need for IT assistance. The selected records can be automatically downloaded to the marketer through the Web or saved for downloading by the mail shop or the e-blasting vendor. The process takes a few minutes.
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