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Why your database
should be your best
friend
Patrick Zuluaga, Director, PMZ Marketing
CONTENT IS KING
DATABASE IS QUEEN
CONTENT IS KING
View your Database
• As a resource asset and a goldmine
• As a source of marketing intelligence
• As a tool to build relevance
• As a means to nurture relationships
• …
Making the most of your
Database
1. What is your database
objective?
2. What information is
available?
3. How can the information
be captured?
4. How can you use the
information?
5. What is the best way to
segment your database?
Database Objectives
• Generate sales revenue
• Retain customers & build loyalty
• Develop an engaged referral network
• Marketing research – data mining
• …
What information is required?
• What is currently available?
– Additional information
• One or more databases
• Database fields
– Visibility
– Mandatory
• How will it be updated?
Growing & capturing information
• Exchange valuable information
• Run competitions
• Subscription programs & campaigns
• Special offers
• Viral & social media
• Preference centres
• Collect information at all contact points
Using the information
• Identify database market
opportunities
• Segment to target the
database
• Personalize where it adds
value
• Prepare relevant and
compelling offers
• Test
Segmenting the database
• Mine the database for its potential
• Define your database segments
– Right size to be worth the effort
– Actionable information
– Make the segment specific
– Unique, identifiable & different
– Discernable link to the focus of the email message
• Narrow your target & pull the trigger
• Relevancy drives response & results
Four ways to segment
1. Financial: Revenue generated from the
customer transactions
2. Demographic: Describing customers in
terms of their personal characteristics
3. Geographic: Describing customers in terms
of their physical location
4. Psychographic or Behavioural: Describing
customers in terms of their preferred
activities and actions
Database Segmentation
• Campaign metrics (use lateral thinking)
– Unique & repeat opens
– Click-thru’s
– Recent & existing subscribers
– Active & non-active
• Demographics
• Online Behavior
– Preferences
– Timing or event-based
Database Segmentation
• Prospects & potential buyers
– New or nurturing
– Hot, warm & cold lists
– Industry
– Affiliates
– Product use
– Gender
Patrick Zuluaga | EMSA 2010
Database Segmentation
• Customers & Clients
– Status (i.e. VIP, repeat)
– Contribution (Pareto’s
80/20 rule)
– Length of relationship /
loyalty
– Purchase activity & history
• Replenishment
– Acquisition channel
– RFM: recency, frequency &
monetary
Recency, frequency & monetary
• Recency
– Date of last purchase or click-thru or lead-
generation conversion
• Frequency
– Number of times purchased or clicked or
conversions
• Monetary
– Amount spent or other value based factor
Patrick Zuluaga | EMSA 2010
Patrick Zuluaga | EMSA 2010
LOVE & NURTURE YOUR DATABASE
AND
Your database is your friend
IT WILL PAY YOU MANY TIMES IN
RETURN!
PATRICK ZULUAGA, DIRECTOR, PMZ MARKETING
Q & A

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Patrick Zuluaga | EMSA 2010

  • 1. Why your database should be your best friend Patrick Zuluaga, Director, PMZ Marketing
  • 4. View your Database • As a resource asset and a goldmine • As a source of marketing intelligence • As a tool to build relevance • As a means to nurture relationships • …
  • 5. Making the most of your Database 1. What is your database objective? 2. What information is available? 3. How can the information be captured? 4. How can you use the information? 5. What is the best way to segment your database?
  • 6. Database Objectives • Generate sales revenue • Retain customers & build loyalty • Develop an engaged referral network • Marketing research – data mining • …
  • 7. What information is required? • What is currently available? – Additional information • One or more databases • Database fields – Visibility – Mandatory • How will it be updated?
  • 8. Growing & capturing information • Exchange valuable information • Run competitions • Subscription programs & campaigns • Special offers • Viral & social media • Preference centres • Collect information at all contact points
  • 9. Using the information • Identify database market opportunities • Segment to target the database • Personalize where it adds value • Prepare relevant and compelling offers • Test
  • 10. Segmenting the database • Mine the database for its potential • Define your database segments – Right size to be worth the effort – Actionable information – Make the segment specific – Unique, identifiable & different – Discernable link to the focus of the email message • Narrow your target & pull the trigger • Relevancy drives response & results
  • 11. Four ways to segment 1. Financial: Revenue generated from the customer transactions 2. Demographic: Describing customers in terms of their personal characteristics 3. Geographic: Describing customers in terms of their physical location 4. Psychographic or Behavioural: Describing customers in terms of their preferred activities and actions
  • 12. Database Segmentation • Campaign metrics (use lateral thinking) – Unique & repeat opens – Click-thru’s – Recent & existing subscribers – Active & non-active • Demographics • Online Behavior – Preferences – Timing or event-based
  • 13. Database Segmentation • Prospects & potential buyers – New or nurturing – Hot, warm & cold lists – Industry – Affiliates – Product use – Gender
  • 15. Database Segmentation • Customers & Clients – Status (i.e. VIP, repeat) – Contribution (Pareto’s 80/20 rule) – Length of relationship / loyalty – Purchase activity & history • Replenishment – Acquisition channel – RFM: recency, frequency & monetary
  • 16. Recency, frequency & monetary • Recency – Date of last purchase or click-thru or lead- generation conversion • Frequency – Number of times purchased or clicked or conversions • Monetary – Amount spent or other value based factor
  • 19. LOVE & NURTURE YOUR DATABASE AND Your database is your friend IT WILL PAY YOU MANY TIMES IN RETURN!
  • 20. PATRICK ZULUAGA, DIRECTOR, PMZ MARKETING Q & A