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Perhaps the most interesting shift in database marketing has been the fact that the database and a Web microsite can be located on the same server or can be electronically connected so that they seem to be on the
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same server. What this means is that the database and the microsite are not two separate entities, but part of a single customer response and communication vehicle. Cookies are placed on the customer s computer so that when she comes to our site, she sees a site that is con gured for her, with things that she has requested to see. This is particularly important in business-to-business marketing. For example, Dell began the process by creating Premier Pages for all customers with 400 employees or more. Dell salespeople contact the purchasing of cer at each company and make a volume pricing deal that is hard to refuse: We will create a Premier Page for your company on the Web. If you get your employees who need Dell products to use this page with passwords controlled by you, we will give them special prices that are not available to the general public. In addition, we will send you monthly reports on what your employees are buying and how much you are saving as a result of your volume pricing deal with Dell. Thousands of companies are copying the Dell idea, setting up special Web pages for their best customers. The system builds sales and loyalty. Of course each purchase gets an on-screen thank you and con rmation that can be printed out on the employee s PC. The employee also gets a simultaneous con rming email, plus another email when the product is shipped. She gets a nal email survey a few days later asking if the product has arrived and requesting her opinion of the process. This is powerful database marketing.
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Another impact of the Web on database marketing is in the area of response to communications. Before 1996, customers responded to marketing communications by phone, mail, or fax. Now more and more, people are coming to a Web microsite to respond. Because of cookies, the Web site knows who they are and greets them by name, just as the old corner grocer used to do. The microsite is not really a Web site, but part of the database. The customer enters an order or responds to the survey questions posed in the communication, and the data go directly into the database. The
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database thanks the customer for the order, which is passed directly to the Web ordering system. It then sends the customer a con rming email. A customer who has previously provided credit card information can order by one click, instead of giving a name, address, and card number over and over again. Why do customers prefer this system of response Because they never get put on hold. They can get an instant response in 24/7 time without getting a busy signal or the message Your call is very important to us. Please stay on the line. Why do companies prefer this type of response Because it saves them millions of dollars. Each call to a live operator costs a company between $3 and $7 per call. Each response to a microsite has a variable cost of less than $0.02.
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America leads the world in telephone customer service, but we pay a high price for it. Since the beginning of the database marketing revolution, every company provides a toll-free number for customers to call with any kind of question. Operators sitting at PCs or terminals linked to the customer database and to company data and archives receive these calls through an electronic call director. As customers ask questions, the operators key in commands on their keyboards and read the answers off their screens to the waiting customers. They also note in the customer database that the customer has called, and what the customer called about. All this expensive service is changing as a result of the Web. Customers are being given access through the Web to the same information that the customer service reps are seeing on their screens. They are able to enter the same commands and get the same information without ever being put on hold. They can search for the status of their shipment, for the price and description of obscure needed parts and supplies, for the text of previously published articles and white papers. They can see and print maps, product descriptions, speci cations, illustrations, and prices. This service builds customer loyalty and saves the company millions of dollars.
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