MKT 700 Study Guide - Midterm Guide: Database Marketing, Customer Service, Financial Services
17 Apr 2014
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What customers want: recognition, service, convenience, helpfulness. Operational databases: process transactions and get monthly statements out. Marketing database: summary of monthly transactions, and also: preferences and profiles provided, promotion and response history from direct mail and e-mail marketing campaigns, appended data from external sources, modeling for churn and next-best product. Lifetime value and rfm analysis, leading to creation of customer segments. Loss during the year: add unsubscribes and undelivers together: total sales due to e-mails: conversion * off e-mail sales multiplier. Loyal customers are more valuable than the average customer: higher retention rates, higher spending rates, higher referral rates, higher lifetime value, be less expensive to serve, buy higher-priced products or services. Loyalty programs what customer behaviour do you want to reward? : better or more customers, high or low-spending customers, what changes in behaviour are required to hold onto more of our good customers and.
