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CIM Market Information and Research 2009-2010

CIM Market Information and Research 2009-2010

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Published by Bola Balogun

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Published by: Bola Balogun on Oct 24, 2011
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12/17/2012

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Alan Wilson (2006) identifies four types of customer data:

& Behavioural data – This are derived directly from the behaviour of the

customer.

& Volunteered data – Data that are given up by the customer through –

for example, registering on a website.

& Profiledata– Thesedataareobtainedbylinkingourdatabasewithother

sources of information. They are linked by commonly held data – for

example, name, address or postcode. For example, Mosaic (see below).

& Attributed data – These are data that are extrapolated from the results

of market research. Although held anonymously, the results of

research on a small sample of the database can be flagged against the

entire database. For example, a survey that looked at attitudes by age

group could be used to group all customers into a relevant segment.

What does this mean in practice? We have all heard of information overload.

So in that case what data should a database contain? Clearly there will be a

difference between B2C and business-to-business (B2B) markets.

30 CHAPTER 2: The Database and CRM

ACTIVITY 2.2

The list below presents six categories of data that might be collected. Try to flesh out the list. Under each heading write

as many types of information that you may need to inform marketing decisions. What are the implications for B2B

markets?

Identification data

Demographic data

Financial data

Lifestyle data

Transactional data

Other data.

If the differences are immediate then there are many similarities. There

are standard elements and these are generally the ‘golden’ fields, which

should be completed and maintained for good database marketing.

Clearly,theseincludeidentificationdataandthefieldsthatcovercustomers’

behaviour.Generally,themostimportantcategoriesherearerecency,frequency,

amount and product category, as these data help us to model the value of the

database now and into the future through the use of lifetime value analysis.

The key fields for any database will be different from the next due to the

different business contexts and objectives the data support. There is clearly a

need to collect data that are reliable and accurate and that supports current

and future decision-making.

The temptation is to capture and hold as much data as possible about

customers but remember that every piece of information needs to be main-

tained and there is a cost in acquiring and maintaining data. As we will see

later there is a legal obligation on companies to ensure that data are suffi-

cient and not excessive and also is kept up to date.

Some data will decay relatively quickly, for example buying patterns and

consumptiondatamaychangeminutebyminute,otherdatawillchangeslowly,

forexamplejobtitleor address.Other data shouldchangerarely or notatallfor

example gender and date of birth. Although sometime even this does change!

Attitudinal data will also change slowly. For example, consider your

attitudes to the death penalty they were probably formed when you became

aware of these issues in your early teens and have probably not changed.

Similar data can be powerful in terms of creating brand propositions.

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