January 2004
DATABASE SCREAMS!
The DMSI e-NEWSLETTER... Rants and raves from the database pros at DMSI.
In This Issue:
The Holy Grail: New Approaches to Integrated Marketing
Dear Friends,
Happy new year! At year's beginning, we find ourselves assessing where we've been and where we're going. You may be planning new initiatives in integrated marketing, database software, data mining, and more, as you strategically plan for your organization. We would like to help. Read on for tips on integrated marketing, new response analysis software, an important catalog conference, and goal setting for 2004.
We are happy to report that based on your positive feedback, this DMSI e-newsletter will be published bi-monthly in 2004! Look for more new ideas, to further your success with your database marketing efforts. Please let us know how we can fit into your plans!
Bruce Gregoire,
President and founder,
Desktop Marketing Solutions, Inc (DMSI)Adjunct Professor, Marketing Information Systems
Johns Hopkins University Graduate School
If 2004 is the year you want to create Integrated Marketing campaigns, keep the following in mind: you cannot do Integrated Marketing without an Integrated Database. How many times have you seen a multi-channel approach to marketing where each channel is using its own database "silo"? A classic example is a consumer who receives a telemarketing offer for a magazine renewal -- while the telemarketer has no knowledge that the consumer has already renewed via a web or mail promotion.
Software vendors with completely integrated modules would love to use this example as an argument for you to buy their expensive application. And after evaluating the pain of a long, expensive conversion, you may be ready to give up again and go back to your old ways! Yes, there are many sound reasons for a completely integrated software application, but keep one thing in mind as you make this evaluation: an Integrated Database does not have to be one physical application. An alternative to software application integration is Data Integration. The concept of Data Integration is that multiple applications can pass data back and forth in a relatively seamless way (e.g. near real time). What are the advantages of using Data Integration with multiple applications?
- Best of breed software - your organization can select the best order processing application, or best marketing application, etc. Many mainstream packages are designed to interface with other popular packages, and thus can export to MS Access, for example.
- Build your own - your organizations may have, or build, it's own custom application, tailored to fit the needs of your business model. With Data Integration, you can add other applications, perhaps off-the-shelf, and your customer data can be passed back and forth seamlessly.
Learn More: To see how one software vendor addresses Data Integration, See Business Objects.
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DMSI Announces WiseGuysTM Response Analysis
Response Analysis - the ability to precisely measure promotional campaign effectiveness - is the single largest unmet need for marketers. WiseGuys software from DMSI tracks the number of outgoing mailings in each campaign, and then does a "matchback" of orders against the mailings to calculate response. In this way, marketers can evaluate the success of each campaign.
Additionally, WiseGuys now provides broadcast e-mail functionality. It uses easy point-and-click selection features to target an audience using sixteen selection criteria. With this capability, users can communicate using a variety of messages specific to individual audience needs.
Learn More: For complete details and FAQ, download WiseGuys FAQ 
in PDF format, or better yet, contact DMSI offices directly at 703-941-8109.
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eCommerce & Catalog Systems Forum
Attention Catalog Pros: Announcing an Important Catalog Conference in Philly!
The last few years have seen major changes in the systems that direct response companies use to manage order entry, customer service, and fulfillment. These systems play a vital role in meeting customer expectations, tracking customer behavior, streamlining operations, and supporting the analysis of promotional campaigns. They provide a strong multi-channel orientation and the option to use web services for data exchange and systems integration. There is an emphasis on providing richer, more flexible reporting and analysis tools.
Mark your Calendar: The Annual Conference of the eCommerce & Catalog Systems Forum, March 10 - 11, in Philadelphia. This conference will showcase what's new in nearly a dozen major solutions, and introduce two brand new ones. The conference is not strictly technical - it is designed as much for CEOs and CFOs as it is for CIOs and IT managers. It features case studies from several multi-channel marketers (including Lands' End), a Best Practices Overview from Executive Director Ernie Schell (an industry veteran who has been writing about these systems for twenty years), attendee roundtables, and an exhibit hall. If you want to compare notes and network with your peers on systems issues, this is the place to be.
Learn More: For more details and registration for this conference, see eCommerce and Catalog Systems Forum. Important registration note: DMSI has arranged for you to receive a $100 discount off the posted price on the registration fee for each attendee. Just put "DMSI" in the "Reference Code" box when you sign up.
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Database Marketing Goal Setting - by Olivia Parr-Rud
[If you are doing your 2004 strategic planning, you will want to start by setting goals. DMSI is happy to feature an article by a top-name practitioner. Olivia Parr-Rud, a Data Mining consultant from Philadelphia, presents the following.]
To make the most of your customer database assets, the first step is to establish clear goals. This involves taking time to define and understand your marketing objectives. This assures that the analysis you perform will be aligned with your company's short and long-term goals. Consider the following list of questions to assist you with defining your goals:
- Do you want to attract new customers? Targeted response modeling on new customer acquisition campaigns will bring in more customers for the same marketing cost.
- Do you want to those new customers to be profitable?
Lifetime Value modeling will identify prospects with a high likelihood of being profitable customers in the long term.
- Do you want to understand the characteristics of your current customers? This involves segmenting the customer base through profile analysis. It is a valuable exercise for many reasons. It allows you to see the characteristics of your most profitable customers. Once the segments are defined, you can match those characteristics to members of outside lists and build targeting models to attract more profitable customers. Another benefit of segmenting the most and least profitable customers is to offer varying levels of customer service.
- Do you want to make your unprofitable customers more profitable? Cross-sell and up-sell targeting models can be used to increase profits from current customers.
- Do you want to retain your profitable customers? Retention or churn models identify customers with a high likelihood of lowering or ceasing their current level of activity. By identifying these customers before they leave, you can take action to retain them. It is often less expensive to retain them than it is to win them back.
- Do you want to win back your lost customers? Win-back models are built to target former customers. They can target response or lifetime value depending on the objective.
- Do you want to improve customer satisfaction? In today's competitive market, customer satisfaction is key to success. Combining market research with customer profiling is an effective method of measuring customer satisfaction.
- Do you want to increase sales? Increased sales can be accomplished in several ways. A new customer acquisition model will grow the customer base, leading to increased sales. Cross-sell and up-sell models can also be used to increase sales.
- Do you want to reduce expenses? Better targeting through the use of models for new customer acquisition and customer relationship management will reduce expenses by improving the efficiency of your marketing efforts.
For best results, take the time to meet with key strategists within your company to define and discuss your database marketing goals. Discuss where you want your company to be in 5 to 10 years. The time you spend is well worth it!
Learn More: Olivia Parr-Rud has over 23 years in the database marketing industry with a 13-year emphasis in data mining, modeling and segmentation for the credit card, insurance, telecommunications, resort, retail and catalog industries. She can be reached through her web site at www.OliviaGroup.com
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How Desktop Marketing Solutions, Inc. can help you!
DMSI is a full-service resource for database marketing software, programming, installation and applications. Whether you're considering a new software system or just need help assessing your current one, DMSI can help. The staff at DMSI offer the rare combination of database know-how and direct marketing expertise. Our niche is small to mid-size organizations who need the power of advanced database techniques to grow their business. We provide software product installation and customization for "best of breed" marketing database and CRM packages.
And now, pick up the phone! One call gets you 15 minutes of Free Database Advice
Step 1: Call DMSI offices anytime at (703) 941-8109
Step 2: "Ask the Experts" at DMSI - give us your toughest database question.
Step 3: No charge - no obligation. 15 minutes may be all the help you need to start solving your marketing database problem.
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