Database Marketing

Databases have traditionally been too large and expensive, and their performance too slow, for them to be cost-justifiable. Consequently, many of the marketing information systems in use today are limited to summary sales reporting systems. However, with the increased importance attached to direct marketing, telemarketing and sales performance management (using laptop computers), many companies are actively engaged in building customer databases. These databases are then used to enhance the quality of an organisation’s relationship with its customers. Good databases will enable the personalisation of communications; marketing managers to be alerted to needs automatically; and comprehensive customer records to be available at the ‘touch of a button’. In addition, good databases can allow for micro segmentation based on such criteria as buying patterns, customer-initiated communications, fine-tuned demographics and other, normally difficult-to-discern, characteristics.