Return with us now to 1992, when integrated database marketing was in its infancy.
I wrote a column that year proclaiming that this new concept would soon be at the heart of all marketing communication, and that it would succeed if it addressed such issues as measurement, clutter and life cycle.
Much has changed in 15 years. But have we gone backward or forward?
Here are some answers.
- Measurement
Practitioners used to talk about how databases helped marketers achieve greater accountability. This is now more critical, thanks to the growing number of channels and variables.
Return on investment is being scrutinized by top management, and the tenure of a chief marketing officer is less than two years. Wall Street wants near-immediate results, and is not interested in midterm to long-term lifetime value.
- Clutter
It's gotten worse. Between the Internet, satellite radio, mobile devices, digital cable and other media, consumers are exposed to up to 5,000 messages every day. Database marketing used to be touted as the solution. It was thought that targeting would make communication more relevant. But it's surprising how many marketers still throw dollars around aimlessly instead of using their databases to send relevant, customized messages to consumers.
- Campaign life cycle
We believed back then that integration must start during the planning stages of a campaign and continue through all phases of execution. That's truer today than ever.
- Database ownership
Corporate marketing departments are still driving data integration initiatives. But other units are increasingly buying the message that the database is the center of customer truth.
- Relationship management
It's still key, but who's managing whom?
The few companies that understood CRM in 1992 made sure they had the tools to attract, satisfy and retain customers.
The need to do that hasn't changed. But the language we use has.
There also has been a shift in where power resides. The rise of the Internet has shifted control to consumers. And this has carried over to offline media. Today's shoppers have many choices — they can pick channels, providers, prices and even delivery speed.
And where does technology fit in? We used to think it would drive everything. Now we know it's here only to support our marketing decisions.
The result is that integrated database marketing is being used in 2007 in all industries. Companies make sure they have an enterprisewide view. They manage the customer experience in all channels and deliver business intelligence that helps the bottom line.
I wrote in 1992 that “the customer is the reason we're here.” This adage lives on because it's true. Consumers have become more elusive, but the basic principles remain the same.
When used with precision and skill, integrated database marketing can deliver profitable customers and meaningful, relevant experiences to each individual.
RICHARD M. HOCHHAUSER is chief executive officer of Harte-Hanks Inc., San Antonio.
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For more CRM and database marketing material, go to http://directmag.com/disciplines/crm/.
Optimal Performance
Nearly all firms surveyed recently by Forrester Research indicated that improving the customer experience is critical or very important. But how many are actually making changes?
Quite a few are adopting business strategies that integrate customer information into the decision process.
Those strategies include:
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Understanding and predicting current and potential customer needs and behavior patterns across all channels.
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Developing and executing plans to interact with customers and prospects in a manner that delivers what they need, when they need it and how they want it.
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Leveraging inbound and outbound interaction points to deliver the best possible experience.
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Transforming data and analysis into business intelligence.
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Applying the right staff resources, business processes, technology and data content.
— RMH
