what are the pros and cons of database marketing ?

Customer Database and Database Marketing

Successful must build, maintain, and use customer database to transact customer relationships

A Customer database contains information about the customer

accumulated through transactions, registrations

info, telephone queries, and customer contact

A Customer database contains information about the customer

accumulated through transactions, registrations

info, telephone queries, and customer contact

A Customer database contains information about the customer

accumulated through transactions, registrations

info, telephone queries, and customer contact

A business database contains

business customer’s past

purchases; past volumes, prices

and profits etc…

A Customer database contains information about the customer

accumulated through transactions, registrations

info, telephone queries, and customer contact

A business database contains

business customer’s past

purchases; past volumes, prices

and profits etc…

These data are collected

by company contact

center and organized into

a data mining house where marketers capture,

query and analyze them

to draw inferences

Through Data Mining Company

can:

• Identify prospects

• Decide on customers who

receive special offers

• Deepen customer loyalty and

enthusiasm by remembering

customer preferences

• Reactivate customer

purchases

• Avoid serious customer

mistakes

Database marketingis used when business

markets that easily collect information from

customerse.g. hotels

Customer relation managements

by companies with lot of cross-selling and up selling

e.g. Amazon and GE

• Some situations are not conducive to database management

• The product is once in a lifetime

• Customers have little loyalty

• The unit for sale is very low, so that CLV is low.

• The cost to gather info is high

• There is no contact between final buyer and seller

• Building and maintaining database requires large investments

• Nearly 70% CRM systems are po orly designed

• It is hard for everyone in the company to be customer oriented

• Employees still prefer the old transaction marketing

• Not all customers want a relationship with the company

• The assumptions behind CRM may not always hold true.

• Loyal customers may expect or demand more and resent to

paying full price of product or services

Special thanks

• https://www.flickr.com/photos/sean-b/• https://www.flickr.com/photos/danielygo/• https://www.flickr.com/photos/68751915@N05/• https://www.flickr.com/photos/kimberlynmerrill/• https://www.flickr.com/photos/griddlecakes/• https://www.flickr.com/photos/darwinbell/• https://www.flickr.com/photos/whyld/• https://www.flickr.com/photos/59937401@N07/• https://www.flickr.com/photos/dahlstroms/• https://www.flickr.com/photos/franganillo/• https://www.flickr.com/photos/122969584@N07//

Thank you!

Created by :

Ashwin SasikumarGovt. Model Engineering College, Kochi

Prof. Sameer Mathur

IIM Lucknow

www.IIMinternship.com

During an internship under :