business

Why marketing is essential for the profitability of a business

We have learned a great deal from database marketing in the last two decades. The following is a list of the 24 essential techniques used in database marketing. Anyone who works in marketing today has to be familiar with and be why marketing is essential for the profitability of a business to use all of these methods.

Test your knowledge with this list. Customer Lifetime Value can be calculated in any industry, business to business or business to consumer. It is used to direct marketing strategy. In the early days of database marketing few knew how to calculate it or how to use it. It is powerful and it works.

It has been around for fifty years, but even today many marketers do not understand it or use it properly. It is a versatile tool that has helped to make database marketing successful. They are effective and they work. They are the principal reason why you build a marketing database. It is possible today to append data to any name and address file to learn age, income, home value, home ownership, presence of children, length of residence, and about forty other valuable pieces of information about any household.

This information can be used to create customer segments, and guide strategy designed to create powerful customer communications. Using appended demographic and behavioral data, it is possible to create models that predict, accurately, which customers are most likely to defect, and which customers are most likely to respond to new initiatives. Modeling, combined with customer communications, can be very powerful technique that can increase response and reduce your attrition rate. Putting customer databases in a relational form makes it possible to store an unlimited amount of information about any customer or prospect, and retrieve it in an instant in a hundred different ways. Relational databases are essential to modern database marketing.

Marketers need to understand the principles involved. As a result, the CSR can speak to the customer as if she knew her, bonding with her and building close rapport. This helps deliver on the promise of database marketing. The web has revolutionized database marketing. Web sites are not wonderful at selling. They are a tremendous research tool and customer bonding and ordering tool.