Marketing databases are designed to organise information to support
marketing and advertising, and the tools that have been developed
to search these databases are designed to extract the knowledge
that can be applied to optimise advertising and marketing
Properly designed and populated marketing databases are the most
effective way to store and retrieve the data that database
marketing is dependent on.
You may ask: Why would I want to undertake the sizable expenses
in time and resources to design, build and maintain a comprehensive
database? Why should my institution incur this additional expense?
The expense can be significant, especially if no existing resources
are available for leverage. Setup costs can exceed $65 per account,
and annual maintenance costs can sometimes be greater than
The answer lies in the ability to limit the marketing expense
for all campaigns by utilising the knowledge base in the marketing
database to target the most responsive customers. A further answer
lies in the benefit gained by the increase in portfolio activity
that those customers provide.
The major players in the financial services industry have found
many uses for marketing databases:
- in the effort to maximise the use of those services by
- in the promotion of their products to potential customers;
- in the broader management of their customer relationships.
The financial services institutions that offer credit and debit
card services have found that the use of marketing databases has
allowed greater selectivity in acquiring less risky and more
profitable customers, and has improved the retention rate of the
most profitable customers.
In addition, some of the most powerful uses of marketing
databases may not be in the marketing department at all. The
determination of what data to include in the marketing database
should be carefully thought out. Input should be obtained from
other areas of the company, including operations, risk management,
legal, and senior management. This will ensure that the critical
areas of the business will be serves and the business-critical data
will be included in the database. The gathering and merging of
information should be carefully done with the goal of integrating
all data into a comprehensive and cohesive database. If the initial
effort of defining the scope and specifics of the information to be
stored is properly done, the database can serve the institution in
many ways beyond its marketing campaigns. This result will serve to
integrate the business better and to increase the return on
investment of the database.
This report introduces and describes the approaches and
methods for building marketing databases, and provides strategies
for involving their use in the development and long-term management
of card portfolios.
Chapter 1 What lessons can be learned from history?
Where can you go for answers?
A brief history of marketing databases for credit issuance
Targeting promotions using marketing databases
In-house or outsource?
Chapter 2 What do you want your marketing database to do
When should you start work on your marketing database?
Who can be an ally in seeking the support of the decision
Basic ideas to establish focus and scale for the database
What can a marketing database do for me?
Chapter 3 Possible marketing database contents: What
should you keep, what should you throw
Prototyping - getting your feet wet
Different database scopes
What have we learned about data around us?
Chapter 4 How can you put all the pieces
What you and your marketing team need to know about building
When should you consider using sequential files?
Object-oriented models - a valid option?
Now, let's talk relational
Qualifying the data source
Chapter 5 How can you make your marketing database work
How can you make your marketing database work for you?
Chapter 6 How do you use your marketing data in models
to improve marketing programs?
What types of models are available and how do you know which
ones to apply?
Specific models described
Planning your modelling process
modelling for the future - newer techniques
Chapter 7 Business Intelligence is not an
What can data mining do for you?
How data mining works
Tools and methods
Where do you start?
Chapter 8 How can the knowledge be extracted and
How can the knowledge be extracted and shared?
Chapter 9 How can you manage the database safely and
How can you manage the database safely and securely?
Chapter 10 What will you need to keep the motor
Infrastructure and support requirements
Chapter 11 What should you really ask of your marketing
Looking ahead to the next generation
Chapter 12 Demographics
Key customer segments
Financial services attributes
Financial services usage
Key drivers and operational impacts
Summary - The credit card consumer