Strategic Database Marketing

Web-focused strategies for turning a company’s customer list into its most powerful competitive advantage For more than a decade, Strategic Database Marketing has been a popular and authoritative how-to on database marketing, referred to every day by marketing practitioners around the world. Featuring dozens of innovative, workable strategies, it has shown marketers how to profitably manage customer relationships, retain loyalty, increase the incremental profits from each customer in the database, and more. Fast-changing tools and technologies require author and database marketing pioneer Arthur Hughes to update the book’s data and techniques. This substantially revised third edition features: A completely new chapter on modeling and appended data New details on fast-changing Web technologies and marketing Updated material on prospecting, warehousing, and filtering In-depth discussion of prospect databases, one of marketing’s newest and most promising innovations

Use the latest digital technologies for lifelong customers and repeat sales “Arthur Middleton Hughes is database marketing’s Great Explainer. He has a unique gift for taking complex subjects and breaking them down in ways people can easily understand. This is the most approachable book I have ever read on the subject.” —Ken Magill, Publisher, The Magill Report “Strategic Database Marketing is a must-read for anyone in CRM or e-mail marketing. The Customer Lifetime Value information and formula is critical to utilize. Arthur’s information makes it easy to update with your e-mail metrics and improve KPIs to know the success of each marketing program.” —David Horwedel, eCRM Program Manager, Dell “Arthur Hughes is truly a direct marketing database guru. This edition of Strategic Database Marketing [is a] must-read for any marketer in today’s ever-changing environment.” —Vicki Updike, President, Miles Kimball Company “Strategic Database Marketing objectively challenges the very way we go about using our data and where we should be going in the future. It is an important, informative, and enjoyable read.” —Matt Edgar, Founder, Global Marketing Alliance and publisher of Direct Marketing International “Strategic Database Marketing provides the fundamentals of consumer data management that every marketer should know. Arthur’s insight into utilizing e-mail and social media both as a data source and communication medium is key to creating the highly relevant and targeted messaging that today’s consumers demand.” —Angela Sanchez, Sr. Director of Marketing, Universal Music Group “Arthur Hughes describes how smart marketers amass the mounds of valuable customer data accumulated by their company, find common characteristics among those individuals, and then suggest a product or service that customers will be eager to purchase−even before they know they want to buy it.” —Kathryn Kiritsis, Director Online Marketing, Avis Budget Group “Read this book if you are looking to make sense of the complexities of database marketing in the digital world. Mr. Hughes has produced a tour de force.” —Steve Cobden, CMO, Thompson & Company of Tampa, Inc. “I have learned so much from Arthur Hughes over the years! This book is no exception. He continues not only to address theory, but also offer practical, measurable application.” —Sue Coakley, Sr. Director, Customer Contact Strategy, Yahoo! About the Book: Since the previous edition of Strategic Database Marketing was published in 2006, digital tools like Google, e-mail, mobile devices, and social networking sites have completely changed the game. Customer outreach knows no boundaries, program management is more complex, and smart use of databases is absolutely critical to success. With these new challenges, though, come great opportunities—and this thoroughly updated new edition has everything you need to seize them all. Retaining all the tips, tactics, and strategies that have made Strategic Database Marketing the go-to resource for marketers who take their craft seriously, this classic guide gives you the most current tools and techniques for gathering and measuring metrics and making accurate predictions with them. Completely revised and updated, this new edition covers all the foundational database marketing principles and practices, including: Lifetime value (LTV) Building profits with recency and frequency The off-e-mail sales multiplier Customer and subscriber acquisition Monetary (RFM) analysis Expanding retail store traffic Customer segmentation Analytics and modeling Loyalty marketing Measuring the impact of social media Testing and control groups Business-to-business database marketing All quizzes, forms, strategies, charts, and graphs are available online for instant reference and downloads. The book also enables you to calculate the lifetime value of your subscribers and customers and sample online databases to quantify your efforts. The personal customer information stored in your company’s database files provides you with a unique and valuable competitive advantage. But are you using that information productively? Is your data difficult if not impossible for frontline employees to access when needed? Strategic Database Marketing, Fourth Edition, is a one-stop resource for making the best possible use of database marketing to meet your strategic goals while keeping up with the changing nature of the market.

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Peter Diamandis' exciting discovery will be shared by every reader of Strategic Database Marketing. Rob Jackson and Paul Wang have swept aside the confusion that surrounds database technology and replaced it with the knowledge and competitive spirit it takes to create the kind of marketing system that will drive the growth of every successful organization. This important book looks into the future and shows marketers and business managers how to take advantage of the countless opportunities new technologies have made available to them. With the emergence of the database comes the means for organizations to communicate one-on-one with consumers - and to tailor all products, messages, and customer services to meet and surpass customer expectations. Strategic Database Marketing explains what the database is and how it can empower marketers; the ABCs of database marketing; the technology, its applications and capabilities; statistical techniques for market segmentation and profitability analysis; and the critical role of database marketing in business growth. Complete with a wealth of case histories that demonstrate database marketing in action, Strategic Database Marketing is the book to lead today's marketers onto the highway to the future.

Database marketing is at the crossroads of technology, business strategy, and customer relationship management. Enabled by sophisticated information and communication systems, today’s organizations have the capacity to analyze customer data to inform and enhance every facet of the enterprise—from branding and promotion campaigns to supply chain management to employee training to new product development. Based on decades of collective research, teaching, and application in the field, the authors present the most comprehensive treatment to date of database marketing, integrating theory and practice. Presenting rigorous models, methodologies, and techniques (including data collection, field testing, and predictive modeling), and illustrating them through dozens of examples, the authors cover the full spectrum of principles and topics related to database marketing. "This is an excellent in-depth overview of both well-known and very recent topics in customer management models. It is an absolute must for marketers who want to enrich their knowledge on customer analytics." (Peter C. Verhoef, Professor of Marketing, Faculty of Economics and Business, University of Groningen) "A marvelous combination of relevance and sophisticated yet understandable analytical material. It should be a standard reference in the area for many years." (Don Lehmann, George E. Warren Professor of Business, Columbia Business School) "The title tells a lot about the book's approach—though the cover reads, "database," the content is mostly about customers and that's where the real-world action is. Most enjoyable is the comprehensive story – in case after case – which clearly explains what the analysis and concepts really mean. This is an essential read for those interested in database marketing, customer relationship management and customer optimization." (Richard Hochhauser, President and CEO, Harte-Hanks, Inc.) "In this tour de force of careful scholarship, the authors canvass the ever expanding literature on database marketing. This book will become an invaluable reference or text for anyone practicing, researching, teaching or studying the subject." (Edward C. Malthouse, Theodore R. and Annie Laurie Sills Associate Professor of Integrated Marketing Communications, Northwestern University)

Check out the supplemental website! www.DrakeDirect.com/OptimalDM/ "Destined to be the definitive guide to database marketing applications, analytical strategies and test design." - Brian Kurtz, Executive Vice President, Boardroom Inc., 2000 DMA List Leader of the Year and DMA Circulation Hall of Fame Inductee "This book is well written with interesting examples and case studies that both illustrate complex techniques and tie the chapters together. The level of detail and treatment of statistical tools and methods provides both understanding and enough detail to begin to use them immediately to target marketing efforts efficiently and effectively. It is perfect for a course in database marketing or as a handy reference for those in the industry. " - C. Samuel Craig, New York University, Stern School of Business "This book should be studied by all who aspire to have a career in direct marketing. It provides a thorough overview of all essential aspects of using customer databases to improve direct marketing results. The material is presented in a style that renders even the technical subjects understandable to the novice direct marketer" Kari Regan, Vice President, Database Marketing Services, The Reader's Digest Association "Finally, practical information on database marketing that tackles this complex subject but makes it clear enough for the novice to understand. This book serves as more than a primer for any senior manager who needs to know the whole story. As one who has spent over 20 years of his career involved in publishing and database marketing, I have a real appreciation for how difficult it is to explain the finer points of this discipline, while keeping it understandable. This book does that admirably. Well done!" - Patrick E. Kenny, Executive Vice President, Qiosk.com "This book is especially effective in describing the breadth and impact of the database marketing field. I highly recommend this book to anyone who has anything to do with database marketing! -- works in or with this dynamic area." - Naomi Bernstein, Vice President, BMG Direct "Ron Drozdenko and Perry Drake have written a guide to database marketing that is thorough and that covers the subject in considerable depth. It presents both the concepts underlying database marketing efforts and the all-important quantitative reasoning behind it. The material is accessible to students and practitioners alike and will be an important contribution to improved understanding of this important marketing discipline. " Mary Lou Roberts, Boston University and author of Direct Marketing Management "I think it is a terrific database marketing book, it's got it all in clear and logical steps. The benefit to the marketing student and professional is that complex database concepts are carefully developed and thoroughly explained. This book is a must for all marketing managers in understanding database issues to successfully manage and structure marketing programs and achieve maximum results. " - Dante Cirille, DMEF Board Member and Retired President, Grolier Direct Marketing "An excellent book on the principles of Direct Marketing and utilization of the customer database to maximize profits. It is one of the best direct marketing books I have seen in years in that it is broad with specific examples. I am going to require new hires to read this (book) to get a better understanding of the techniques used in Database Marketing." - Peter Mueller, Assistant Vice President of Analysis, Scholastic, Grolier Division "This is an amazingly useful book for direct marketers on how to organize and analyze database information. It's full of practical examples that make the technical material easy to understand and apply by yourself. I strongly recommend this book to direct and interactive marketers who want to be able to perform professional database analyses themselves, or be better equipped to review the work of analysts. " - Pierre A. Passavant, Professor of Direct Marketing, Mercy College and Past Director, Center for Direct Marketing, New York University "The most useful database marketing reference guide published today. The authors do an excellent job of laying out all the steps required to plan and implement an effective database marketing strategy in a clear and concise manner. A must have for academics, marketing managers and business executives." - Dave Heneberry, Director, Direct Marketing Certificate programs, Western Connecticut State University and Past Chair, Direct Marketing Association "This book is essential for all direct marketers. It serves as a great introduction to the technical and statistical side of database marketing. It provides the reader with enough information on database marketing and statistics to effectively apply the techniques discussed or manage others in the environment " - Richard Hochhauser, President, Harte-Hanks Direct Marketing Ronald G. Drozdenko, Ph.D., is Professor and Chair of the Marketing Department, Ancell School of Business, Western Connecticut State University. He is also the founding Director of the Center for Business Research at the Ancell School. He has more than 25 years of teaching experience. The courses he teaches include Strategic Marketing Databases, Interactive/Direct Marketing Management, Product Management, Marketing Research, and Consumer Behavior. He is collaborating with the Direct Marketing Education foundation to develop a model curriculum for universities pursing the area of interactive or direct marketing. Working with an advisory board of industry experts, he co-developed the Marketing Database course in model curriculum. Dr. Drozdenko has co-directed more than 100 proprietary research projects since 1978 for the marketing and research and development of several corporations, including major multinationals. These projects were in the areas of strategic planning, marketing research, product development, direct marketing, and marketing database analysis. He also has published several articles and book chapters. He holds a Ph.D. in Experimental Psychology from the University of Missouri and is a member of the American Marketing Association, the Society for Consumer Psychology, and the Academy of Marketing Sciences. He is also the co-inventor on three U.S. patents. Perry D. Drake has been involved in the direct marketing industry for nearly 15 years. He is currently the Vice President of Drake Direct, a database marketing consulting firm specializing in response modeling, customer file segmentation, lifetime value analysis, customer profiling, database consulting, and market research. Prior to this, Perry worked for approximately 11 years in a variety of quantitative roles at The Reader's Digest Association, most recently as the Director of Marketing Services. In addition to consulting, Perry has taught at New York University in the Direct Marketing Master's Degree program since Fall, 1998, currently teaching "Statistics for Direct Marketers" and "Database Modeling." Perry was the recipient of the NYU Center for Direct and Interactive Marketing's "1998-1999" Outstanding Master's Faculty Award. Perry also lectures on testing and marketing financials for Western Connecticut State University's Interactive Direct Marketing Certificate Program. Along with Ron, he is collaborating with the Direct Marketing Education Foundation to develop a model curriculum for universities pursuing the area of interactive or direct marketing. Perry earned a Masters of Science in Applied Statistics from the University of Iowa and a Bachelor of Science in Economics from the University of Missouri. The book evolved from an outlined developed by an advisory board of industry experts that was established by the Direct Marketing Educational Foundation. Contemporary direct marketing and e-commerce could not exist without marketing databases. Databases allow marketers to reach customers and cultivate relationships more effectively and efficiently. While databases provide a means to establish and enhance relationships, they can also be used incorrectly, inefficiently, and unethically. This book looks beyond the temptation of the quick sale to consider the long-term impact of database marketing techniques on the organization, customers, prospective customers, and society in general. Ron Drozdenko and Perry Drake help the reader gain a thorough understanding of how to properly establish and use databases in order to build strong relationships with customers. There is not another book on the market today that reveals the level of detail regarding database marketing applications - the how's, why's and when's. Features/Benefits: Draws on numerous examples from real businesses Includes applications to all direct marketing media including the Internet Describes in step-by-step detail how databases are developed, maintained, and mined Considers both business and social issues of marketing databases Contains a sample database allowing the reader to apply the mining techniques Offers access to comprehensive package of academic support materials

Presents information on database marketing and includes topics such as media selection for database marketing; the PC server and the mainframe; hardware and software for database marketing; selling the database to top management; and measured marketing in retail chains.