DATABASE MANAGEMENT

Customer Related Databases

It is the collection of customer-related information focusing on historic sales, current

opportunities, and future opportunities. These databases are maintained by a number of different
functions such as sales managers, channel managers, product managers, etc. It can store
information such as −

 Customer’s personal information containing fields for name, address, contact details,
contact preferences, age, marital status, birthdate, anniversary, professional and social
status, etc.
 Sales managers can record past transactions, product preferences, opportunities,
campaigns, enquiries, billing, etc.
 Channel managers can record business-owned retail outlets, online retail information.
 Product managers may record product preference, price band, product categories
explored, etc.

Based on the respective purposes, there are two types of databases − Operational and
Analytical. The operational data resides in Online Transaction Processing (OLTP) database and
analytical data resides in Online Analytical Processing (OLAP) database.

Developing and Maintaining Customer-Related Database

The database is a repository of collection of files (or tables). The files contain a number of
records (or rows of the table), which in turn contain various fields (or columns of the table). Each
file contains information about a topic such as customer, sales, products, etc.

The steps given below are followed to create and maintain a customer-related database −

The database always needs to be very accurate and up-to-date.

Types of Customer Data

There are mainly two types of CRM data − Primary and Secondary. The primary data is the one
which is collected for the first time. The secondary data is the one which has been collected
earlier.

The primary data is collected by conventional means such as conducting surveys, holding a skill
competition, inviting the customers to subscribe for the newsletter or to register their purchase,
etc.

Database and Hardware for CRM

The CRM software use Relational Database architecture. It is composed of tables with rows and
columns. The tables are connected to other tables by a unique identification number stored in the
ID field, named primary key.

Hardware Considerations for CRM Database

The hardware platform on which the database will reside is selected based on the following
factors −

 The database size.

 The existing technology used in the business.
 The location of CRM users. Especially in case of global use of CRM, the multilingual
users from different time zones can access the CRM for operational and analytical
purposes.

Data Attributes

The CRM data must have the following attributes −

 It must be sharable because many people need to access it from various geographical
locations.
 It must be relevant means pertaining to the given purpose.
 It should be most accurate. Inaccurate data wastes the marketing efforts of the business,
predicts wrong opportunities and serves the customers with insufficient and inaccurate
 service. Data should be reviewed timely to ensure removal of inaccuracy taken place
while acquiring and entering the data.
 It should be up-to-date means it should store and show the latest information.
 It should be transportable from one location to other. It should be available where the
users need it. The technology of compiling and handling data electronically is essential
for today’s fast-paced businesses.

It should be secured. Businesses need to keep their data safe from loss and theft and unethical
snooping as many businesses can subscribe to the same CRM software through the same portal

DIRECT MARKETING

Direct marketing means connecting directly with carefully targeted segments of individual
consumers, often on a one-to-one, interactive basis. For most companies, direct marketing is a
supplemental channel, but for others it is a complete way of doing business. It’s a type of
advertising that seeks to elicit an action from a selected group of consumers in response to a
communication from the marketer. Direct marketing is expanding, it is key to the trend towards
building close and interactive customer relationships. Direct marketing has certain benefits for
buyers: it is convenient, private, easy and gives a lot of comparative information. It also has
benefits for sellers: it is an important tool for building customer relationships and is a low-cost
and efficient way of reaching target markets.

Characteristics of Direct Marketing

 A database of names (prospects, customers, businesses etc) often with other relevant
information such as contact no./addresses, demographic information, purchase
habits/history, and company history is used to develop a target market with common
interests, traits, or characteristics.
 Marketing messages are addressed directly to the list of customers or prospects.
Addressability comes in a variety of forms including email addresses, phone nos, fax nos
and postal address.
  It seeks to drive a specific “call to action” eg. An advert may ask the prospect to call a
free phone number, mail in a response or order, or click on a link to a website
 It emphasizes trackable, measurable responses, results and costs from prospects and/ or
customers, regardless of medium

Benefits of direct Marketing

 Direct marketing uses a variety of media, including mail, email, magazine ads,
newspaper ads, television and radio spots, and informatials. This flexibility allows
Direct marketing to provide interactivity and measureability and still be able to take
advantage of new technologies. By being able to utilize virtually any media, Direct
marketing will lead marketers as interactive television, the information highway, and
other new technologies become a reality.
 In Direct marketing the transactions may take place at any location and is not limited
to retail stores or fixed places of business. The transaction may take place in the
consumers home or office via mail, over the phone, or through interactive television.
It may also occur away from the home or office, as at a kiosk foe example.
 Direct marketing gets your message to the customer or prospect to produce some type
of immediate action. It’s the straightest line between you – the advertiser and the
action you want those who receive your message to take.

Direct marketing begins with a good customer database. A customer database is an organised
collection of comprehensive data about individual customers or prospects, including geographic,
demographic, psychographic and behavioural data. Companies can use this database to located
potential customers, learn about their customers and build relationships with them. There are
several major forms of direct marketing:

- Direct-mail marketing: direct marketing by sending an offer, announcement, reminder or

other item to a person at a particular physical or virtual address. It can be used well for direct
one-to-one communication, but can be resented as “junk mail”.
- Catalogue marketing: direct marketing through print, video or digital catalogues that are
mailed to select customers, made available in stores, or presented online. They eliminate mailing
costs and allow for real-time merchandising.

- Telephone marketing: using the telephone to sell directly to customers.

- Direct-response television (DRTV) marketing: direct marketing via television, including

direct-response television advertising (or infomercials) and home shopping channels. Home-
shopping channels are television programmes or channels dedicated to selling goods and
services.

Insert media: These are marketing materials that are inserted into other communications, such
as a catalogue, newspaper, magazine, package, or bill

Online marketing are efforts to market products and services and build customer relationships
over the internet. The Internet is a vast public web of computer networks that connects users of
all types around the world to each other and an amazingly large information repository. Click-
only companies are the so-called dot-coms, which operate only online and have no brick-and-
mortar market presence. Brick-and-mortar companies are traditional companies that have
added online marketing to their operations. There are four major online marketing domains.

1. Business-to-consumer (B-to-C) online marketing: businesses selling goods and services

online to final consumers.

2. Business-to-business (B-to-B) online marketing: businesses using online marketing to

reach new business customers. They serve current customers more effectively and obtain buying
efficiencies and better prices.

3. Consumer-to-consumer (C-to-C) online marketing: online exchanges of goods and

information between final consumers. Blogs are online journals where people post their thoughts,
usually on a narrowly defined topic. Companies can also advertise on blogs and influence
content there.
4. Consumer-to-business (C-to-B) online marketing: online exchanges in which consumers
search out sellers, learn about their offers and initiate purchases, sometimes even driving
transaction terms.

Either way, most companies now exist online. Corporate (brand) websites are websites
designed to build customer goodwill, collect customer feedback and supplement other sales
channels rather than sell the company’s products directly. A marketing website is a website that
engages consumers in interactions that will move them closer to a direct purchase or other
marketing outcome. However, creating a website is not enough, sites must be visited and
therefore a website must be promoted. This can be done via online advertising: advertising that
appears while consumers are browsing the Web, including display ads, search-related ads, online
classifieds and other forms. Rich media allow animation, sound, video and interactivity. The
largest form of online advertising is search-related ads (or contextual advertising). Viral
marketing is the Internet version of word-of-mouth marketing: websites, videos, email messages
or other marketing events that are so infectious that customers will want to pass them along to
friends.

Online social networks: online social communities, blogs, social networking websites or even
virtual worlds, where people socialise or exchange information and opinions. Marketers can
engage in online social networks by participating in existing Web communities or establishing
their own. Social networking sites presents challenges, since companies do not really know how
to use them effectively. E-mail is an important and growing online marketing tool and it can be
the ultimate marketing medium. However, the explosion of spam (unsolicited, unwanted
commercial e-mail messages) can lead to customer irritation.

Mobile: Through mobile marketing marketers engage with prospective customers in an

interactive manner through a mobile device or network eg. Cell phone, smartphone or tablet. The
types of mobile marketing messages include SMS, MMS
e- mail marketing: Sending marketing messages through email. Its one of the most widely used
direct marketing methods. Its relatively inexpensive to design, test, and send an email message.
It also allows marketers to deliver messages around the clock, and to accurately measure
responses.