Contemporary Database Marketing

TABLE OF CONTENTS

Preface
Introduction

Section 1

Fundamentals of Database Marketing

Chapter

ONE

Basics of Direct Marketing

What Is Direct Marketing?

Database Marketing: The Next Step

Database Productivity: Customer Loyalty and Retention and the Lifetime Value of a Customer

The Direct Marketing Cycle

Full-Circle Marketing

The Uses and Users of Database Marketing

Interactivity and the Convergence of Print, Broadcast, and Electronic Media

Privacy and Permission Marketing

Workshop 1-1:
Turning Madame Tussaud's into a Strategy-Driven Direct Marketer

TWO

Basic Principles for Developing, Maintaining, and Using a Database

Information a Database Should Contain

Kinds of Databases

Designing a Database

Maintaining a Database

Workshop 2-1:
Developing and Using a Customer Database

THREE

Data Enhancements

Data Sources and Collection

Data Warehousing

Data Mining

Enhancing a Database

A Guide to an Endless Array of Enhancements

Compiling a Customer Profile

The Customer Database and the 80/20 Principle

Interactive Workshop 3-1:
Using a Balanced Scorecard Dashboard

Section 2

The Essential Tools of Information Gathering and Analysis

FOUR

Information Gathering: Sources and Uses of Data

Surveys and Experiments

Uses of Research: Identifying Problems and Objectives

Sources of Data

Workshop 4-1:
Experimentation (Testing) of Copy Approach in Fund Raising

Workshop 4-2:
A Primer on Survey Design

FIVE

Using Basic Statistical Concepts

Basic Working Concepts: Population and Sample

Descriptive Statistics /td>

Frequency Distribution

Inferential Statistics

Interactive Workshop 5-1 Using Excel for Confidence Intervals and Hypothesis

Testing

SIX

Data Analysis Tools and Techniques

Bivariate Analysis

Multivariate Analysis

Cluster Analysis

Interactive Workshop 6-1:
Using Excel for Cross-Tab Analysis

Interactive Workshop 6-2:
Excel for Independent Sample T-Test for Means

Interactive Workshop 6-3:
Using Excel for Independent Sample T-Test for Response Rate

Interactive Workshop 6-4:
Using Excel for Correlation Analysis

Interactive Workshop 6-5:
Using Excel for Simple Regression

Interactive Workshop 6-6:
Using Excel for Multiple Regression Analysis

Section 3

Database Marketing Strategies and Program Applications

SEVEN

The Lifetime Value of a Customer

Rate of Response: What Should It Be? How Is It Measured?

Determination of Break-Even and the Lifetime Value of a Customer

Interactive Workshop 7-1:
Establishing Break-Even Point for a Single Sale

Interactive Workshop 7-2:
The Continuity of Value of a Customer over Future Time

Interactive Workshop 7-3:
Enhanced LTV: The Lifetime Value of a Customer with Cross-Selling

Planning, Forecasting, Budgeting, and Evaluating

Interactive Workshop 7-4:
Forecast Model That Views Customers as Investments

Interactive Workshop 7-5:
The Recency/Frequency/Monetary (R/F/M) Formula

Exercises in Determining Lifetime Value

EIGHT

Consumer Market Segmentation

The Nature of Market Segmentation and Penetration

How to Identify Consumer Market Segments

Product Differentiation and Positioning

Workshop 8-1 Identifying and Reaching a Database Market Segment

NINE

Business-to-Business Market Segmentation

How to Identify Business-to-Business Market Segments

Extended Data--New Business Enhancement Variables

Econometric Footprints

Cluster Analysis: Targeting Business Customers

Unleashing the Power of Database Marketing: Location Analysis

Interactive Workshop 9-1:
Business-to-Business Market Segmentation

Business Cluster Penetration Analysis of Customers

Interactive Workshop 9-2:
Building a Business-to-Business Customer Profile

TEN

Structuring and Evaluating an Experiment

Experimental Designs

Designing a Random Sample

How to Determine the Size of the Sample

Interactive Workshop 10-1:
Setting up an Experiment

Interactive Workshop 10-2:
Calculating Samples Size and Limit of Error

Interactive Workshop 10-3:
Measuring Difference

Interactive Workshop 10-4:
Factorial Designs

Interactive Workshop 10-5:
Use of Excel for Independent t-Test for Testing Response Rates between Test and Control Groups

Interactive Workshop 10-6:
Use of Excel for Analysis of Variance

Exercises in Structuring and Conducting Experiments

ELEVEN

Decision Making

The Decision-Making Process

Predictive Modeling

Workshop 11-1:
Using Multivariate Analysis to Make Decisions

TWELVE

Using Database Information to Create More Effective Promotions

Why People Buy

The Nature of Demand

Offers and Benefits to Customers

The Nature of Promotion

Direct Response Advertising: Message and Media

Interactive Workshop 12 Developing Targeted Promotions

Section 4

Cases

THIRTEEN

The Mountain & Valley Resort (MVR) Ski Database

The MVR Ski Database

Market Segmentation and Customer Penetration of the MVR Ski Database

Interactive Workshop 13-1:
Demonstration of Utilization of the MVR Ski Database

FOURTEEN

Market Segmentation and Customer Penetration of MVR Guest Database

Correlations of Cluster Penetration with Demographics and Lifestyles

Media Analysis: Categories and Lifestyle Preferences of Customers

Interactive Workshop 14-1:
Calculating Customer Penetration and Building a Profile of MVR Guests

Interactive Workshop 14-2:
Calculating the Lifetime Value of an MVR Guest

Exercises

Bibliography

Index

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