1) Companies use database marketing to understand their target customers and maximize profits by acquiring high-value customers at low costs. This involves tracking customer data, analyzing marketing campaigns, and building statistical models. 2) Statistical models like the "Buy Till You Die" model can predict customer lifetime value (LTV) by modeling individual customer transactions and dropout rates over time. These models are fitted to customer data and segments to improve predictions. 3) Data visualization and statistical modeling help companies test marketing campaigns, identify high-value customer segments, and optimize strategies to improve customer retention and response rates.