Response Lists and Targeted Advertising information: Database marketing seems so logical, so rooted in common sense that an ex-planation of the purpose of maintaining an in-house database seems unnecessary. Except for some veteran mail-order sellers, however, few people in business, large or small, maintain the information they should. If it hasn't been clear before now, the purpose of building and maintaining your data-base is to sell more to existing customers and find more highly profitable customers.

 

To do this you need to establish and regularly update your customer files. Here are some suggestions for building your own database: Upgrade your computer(s). If your computer is more than two years old you may be wasting time trying to save space on a relatively small hard drive. You may not have removable cartridge storage capacity, or you may lack the technology to run the latest programs and access the World Wide Web most effectively.

 

While some of the best mail order management programs will run on older systems, including DOS, upgrading your computing power makes sense because your computer can be used for a variety of other direct marketing tasks. Even if you use a service bureau to manage your lists, computing power is still valuable. You can create your own advertising designs with desktop publishing, analyze test results, and operate telemarketing pro-grams that both prompt telephone sales reps and record data, just to name a few options.

 

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Record information on your customers and their buying histories, then look for similarities. Some things may be obvious. A large percentage of your customers may come from the same ZIP code, for example.

 

Sort and segment your database to save money. You can mail more frequently to your best customers, and you can avoid wasted mailings to particular segments, such as offering backyard play equipment to apartment dwellers or customers without children. It also lets you create special, high-percentage response promotions based on some of your customers' unique characteristics.

 

When you're able to identify your best customers, you have a better idea of the characteristics to look for when you rent outside lists.

 

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