Customer Database & Database Marketing - Meaning, Advantages, Challenges and Examples (mktg 100)

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The Customer Database is a collection of customer data in an organized manner that is used by organizations to develop a suitable marketing plan for a specific product or service.

Customer Database includes

- Past purchase information
- Demographics
- Psychographics
- Media graphics
- Related information

Data Warehouse and Data Mining

Data Warehouse refers to a process of gathering and managing information and data from innumerable sources that will provide the marketers important understanding of the customers.

Data Mining refers to the process of uncovering valuable information from huge data sets to understand patterns and trends.

Database Marketing - Introduction

Database Marketing is a direct marketing process that takes the help of a customer database for marketing a product or service.

Database Marketing Advantages

- Identifying potential customers.

- Creating personalized communication for every customer.

- Increased customer loyalty because of various incentives, discounts, and coupons.

- Increase in repeat purchases.

- Identify the best time and the channel for improved engagement with a customer.

- Helps the sales staff in refining customer service.

Database Marketing – Challenges

- Customer data keeps on changing and the information that is gathered becomes outdated.

- Incomplete or inaccurate information will have a direct impact on the accuracy of the data.

- Acting on the available information promptly is sometimes difficult.

- Employees might be reluctant to perform CRM.

- Some customers might become irritated with personalized interactions.

Example – Nike

- Nike Fit App is a highly technologically advanced app that measures both feet to know the perfect fit for a customer's feet. The data is saved for further purchases.

- Zodiac, a Nike acquisition, helps to collect data points.

Example – Amazon Data Lake

- Amazon Data Lake is the largest logistic network in the universe that works as a centralized vault to store, locate, share and administer data at any scale.

Example – Domino’s

- Domino’s uses software to create an infrastructure to aggregate data from specific channels and use it to understand its customer and their buying patterns.

This video is on Customer Database & Database Marketing and it has the following sub-topics.

Time Stamps

0:00 Introduction to Customer Database and Database Marketing
01:06 Data Warehouse and Data Mining
01:34 Database Marketing Introduction
01:58 Database Marketing Advantages
03:45 Database Marketing – Challenges
03:48 The decomposition of data
04:08 Accuracy of data
04:20 Acting on customer data well in time
04:34 Employee may oppose becoming customer-oriented
04:48 Some customers don’t want any connection with the company
05:07 Example – Nike
06:41 Example – Amazon Data Lake
07:44 Example – Domino’s