Database Marketing
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Most companies have the need for effective database marketing, whether they're selling a product or service or, in the case of charities, using database marketing to keep donors aware of their activities. Although many people are not keen on intrusive database marketing because it means more junk mail, database marketing has become so sophisticated that it is now targeted to individual needs. For example, database marketing has improved to the extent that with efficient practises in place, the likelihood of a customer under the age of 25 receiving direct mail concerning a pension plan is unlikely to happen. This is the kind of database marketing occurrence that demonstrates the need for an effective data management system to save needless cost and inefficiencies.
Supermarkets use very sophisticated types of database marketing, to ascertain what customers preferences are. For example, details can be stored on a database marketing system everytime a purchase is made with the use of loyalty cards. Uses of this type of database marketing include the direct targeting of specific products to suit customers needs. For example, companies can tailor their database marketing to ensure that they target customers with particular tastes, and then subsequently target future database marketing promotions in that area, direct to the most receptive customer.
To avoid unwanted mail from poor database marketing, telephone, mail and fax, preference services are available that remove a person's personal details from some database marketing lists. Organisations with sound database marketing policies ensure that they reference this list prior to carrying out any marketing activity targeted at their customer database. This helps to significantly reduce the amount of unsolicited contact.