Direct Marketing is the Phone Number List interactive use of advertising media, to stimulate an (immediate) behavior modification in such a way that this behavior can be tracked, recorded, analyzed, and stored on a database for future retrieval and use.The database, and I will refer to it as a "marketing database", is a central part of direct marketing. Without a means of collecting all the information into a logical and meaningful order, your marketing will fail because you lose the ability to track and analyze each campaign's effectiveness and ROI. What is a database? It is a collection of information stored on a computer. A "marketing database" is more than a name and address of an individual or company. It is a collection of customer and prospect information from all contact points. Contact points include in part:
Having this information, you Phone Number List can begin to develop multiple initiatives. They are designed around the data collected to improve marketing initiatives, and identify historical customer value to your organization. These are not Phone Number List mutually exclusive. The more analysis you perform improves future marketing campaigns. These initiatives fall into two broad categories: Segmentation by Sales -conduct an analysis by RFM-Recency, Frequency and Monetary variables. These are three metrics found on any transactional database. Having this kind of analysis will identify the old "80/20" rule. 80 per cent of your sales come from 20 percent of your customers. Identifying who they are and having the ability of scientifically selecting them saves a lot of wasted advertising dollars.
Select by trigger event-maintain Phone Number List and update RFM information on each customer. Evaluate the change in behavior month-to-month. If there is a decrease at a set amount, say 10%, pro-actively create marketing programs to change the customer's behavior. Segment by Communication Channel response information to identify best customer or channels of communication. For example, you can evaluate ROI by channel. You might find that a two step lead generation and telephone follow-up produces a higher ROI than mailing a large catalog for an immediate sale.