Fresh-Cut Data: 1-800 FLOWERS.COM TAKES ITS DATABASE IN HOUSE

1-800-Flowers.com, which takes pride in its technological savvy, came to a sad conclusion last summer – its system for accessing customer buying and service information was slow.

When the company needed names of Valentine’s Day buyers to target with Mother’s Day promotions, for example, it couldn’t get them. It often took months to receive an upgrade – hardly cutting edge for a firm that does 35% of its business online and 65% by telephone.

So the company pulled its 8-million-name database in house and started exerting direct control. The objective: to better facilitate customized marketing communications both offline and online.

The first step was to implement some new software. For example, the firm began using Kana’s Response, a Web-based customer service software for online customer communications. The program is useful for verifying credit card numbers and removing names from its list of people who do not want to receive e-mail communications, according to Joe Hage, relationship marketing manager for 1-800-Flowers.com.

It also tested [email protected], which lets 1-800-Flowers.com integrate customer data from the Internet, e-mail, inbound telemarketing and direct mail with historical buying information about each customer. Or as CEO Jim McCann said in a statement, the firm can “offer our customers personalized Web content and product selections based on their individual preferences. We could also offer specialty programs – through direct mail, e-mail or our call center – for other items to complement that purchase.”

For example, the firm can isolate those customers who exclusively buy roses vs. those who buy other types of flowers and gifts, for later direct mail and/or e-mail campaigns for upselling and cross-selling, says Paul Davis, senior knowledge manager for 1-800-Flowers.com.

“With the ability to take information from about 10 different data fields, we can drive married men living in Manhattan to their nearest company florist, without contacting married women living in Ohio,” says Hage.

Later this year, 1-800-Flowers.com plans to start building individual Web sites for customers based on their individual preferences and specialty programs. It seems to be working. While the Westbury, NY firm has not pinpointed any one cause for its 34% growth for the quarter ended last Dec. 26, Hage attributes much of it to the new systems.

Despite the company’s established record as an online marketer, Hage isn’t taking any chances. “Improve or die,” he asserts.