TOPIC 4

DATABASE
MARKETING

Assoc. Prof. Dr. Syed Norris Hikmi Syed Abdullah

Information about customers and
markets is one of the main
marketing assets.
 Definition 1

What is Computer database technologies are put together to design,

create, and manage customer data lists containing information
about each customer's characteristics and history of interactions

Database with the company.

Definition 2

Marketing A systematic approach to the gathering, consolidation, and

processing of consumer data (existing customers and potential
customers) that is maintained in a company's databases.

Definition 3
A way of organizing the whole marketing process of a company.

Definition 4
A technique of gathering all the information available about
customers, leads, and prospects into a central database and
using that information to drive all marketing efforts.
 A systematic approach to the gathering,
In a nutshell… consolidation, and processing of marketing
databases to learn more about customers
and competitors, select target markets,
compare customers' value to the company,
an inclusive definition of provide more specialised offerings, as well as
Database Marketing: make other marketing and strategic
decisions.

Although databases have been used for customer data in traditional marketing for a long
time, the database marketing approach is different because more consumer data is
maintained, and data is processed and used in new and more sophisticated ways.
 01 02 03
Informational Technological Commercial
Reasons Reasons Reason
• Availability for large quantity • Technological approach to To remain competitive
of data store data For well-organized
• Provide information based on • Tool to analyse data business
data • Availability of commercial
software, some of which are
even "user friendly" (eg. XL
Miner, SAS Enterprise Miner)

Why Database Marketing?

Usage of Database Marketing

• For locating, selecting, targeting, servicing, and establishing relationships with

customers in order to enhance the engagement of customers and company
(CRM).
• For choosing what to market, to whom, and when (direct marketing) based on the
knowledge and experience with a customer or prospect customer.
• Used both the strategic and tactical levels to drive targeted marketing efforts.
• For analysing customers’ buying and enquiry patterns.
• For contacting individual customers through a variety of media.
Example of Database Marketing Usage

Submit a Populates your Customer

Web Form Community Database
Website
Visitor

Template Merged with

New Data

Third Party Sent the Merged Email

Example of Database Marketing Usage (cont.)
Example of Database Marketing Usage (cont.)
Example of Database Marketing Usage (cont.)
Example of
Database
Marketing
Usage (cont.)

• Easy order
• Recent Order
For increasing sales: Quick
purchase based on order history
Example of
Database
Marketing
Usage (cont.)

Order tracking and after sales activities

Example of
Database
Marketing
Usage (cont.)

• For retaining customer loyalty:

Membership Renewal
Example of
Database
Marketing
Usage (cont.)

• For retaining customer on a

particular channel: Discounts for
online purchase.
Example of
Database
Marketing
Usage (cont.)

• For retaining customer loyalty:

Rewards for membership
subscription
Example of
Database
Marketing
Usage (cont.)

• For retaining customer

loyalty: Personalised
offers for member.
Database Marketing (DBM) and
Customer Relationship Management (CRM)
• In order to form a relationship with its customers, a company must be able to:
Notice - what its customers are doing?
Remember - what it and its customers have done over time?
Learn - from what it has remembered
Act On - what it has learned to make customers more profitable?