Database applications (MR, unit 3)

• Operational support - e.g. bank check password correct in telephone banking
• Analytical uses - e.g. bank segments customer base for marketing purposes

Potential objectives:
1) Identify most profitable customers
Pareto's 80/20 principle. Use purchase frequency & value per customer determine where promotional budget can be most profitable

2) Identify buying trends
Tracking purchases per customer (or group) to identify

• Loyal customers - retention cheaper than acquisition
• Backsliding - lost customers or decreased usage
• Seasonal/local purchase patterns
• Demographic purchase patterns
• Promotional campaigns - how purchase patterns respond to

3) Identifying marketing opportunities
Information on likes, dislikes, complaints, feedback, lifestyle may be useful for:

• product improvement
• customer care programmes
• NPD
• decision-making across the mix

or... cross-selling, targeting niche markets, converting occasional users to regular


Using database information

1. Direct mail - maintain contact, generate leads, direct-selling,
   
2. Transaction processing - link to programmes that generate invoices, receipts
   
3. Marketing research & planning - surveys
   
4. Contacts planning - who to contact or give incentives, track event invitations
   
5. Product development & improvement - track purchases, queries, complaints, warranty claims