Leveraging your marketing database
With the integrated marketing database serving as the foundation, database marketers can fully harness and utilize the power of their marketing data. The Dovetail marketing database solution enables our clients to execute relevant, highly personalized, cross-channel marketing campaigns which can be continually refined through response, profile, and propensity to buy analysis.
Dovetail clients have access to their continually updated, integrated repository of customers, their transactions, and prospects, in a single unified marketing database. Our clients routinely perform advanced segmentation, list creation and output, analysis, and custom reporting in support of multi-channel (mail, email, telesales and SMS) database marketing initiatives.
Often, marketers know what they want to do and which techniques they want to use, but the marketing database infrastructure is not there to support them. Examples include using recency, frequency, monetary, lifetime value, customer segmentation, predictive models, and various database marketing techniques to increase revenue and/or decrease cost.
Dovetail clients achieve ROI in the form of both increased revenue and decreased costs. Examples of items that generate ROI include the following:
RFM (Recency, Frequency, Monetary)
Recency, Frequency, Monetary analysis and segmentation is a basic building block of database marketing. Many marketers want to utilize RFM, but their data and data structures do not effectively support RFM analysis and segmentation. Using the Dovetail marketing database solution, RFM is implemented and managed according to each client’s custom requirements. Some clients may choose to use raw RFM scores. For instance, the client may stipulate business rules that result in an “R” score of 1 – 10; an “F” score of 1 – 20, and an “M” score of $1 – $500. Combinations of these elements can be granularly used within the Dovetail Application for selection and analysis. Alternatively, if a client wants RFM segmentation in selectable deciles or duo-deciles, Dovetail will organize the RFM segments per each client’s requirements.
LTV (Lifetime Value)
For many marketers, LTV is an important component of their database marketing initiatives. For some organizations, given the advent of new channels and increasing marketing sophistication, LTV calculations and projections are more important than ever. For instance, an organization may determine that a consumer who purchases via multiple channels and who has certain web-browsing habits on the organization’s website has three times greater LTV than a single-channel buyer who does not visit the organization’s website. Dovetail’s marketing database design provides the platform to analyze and identify these LTV tiers. Once identified, via the Dovetail Application’s database marketing software, LTV projections and formulas are applied, making LTV usable for selection and analysis.
The Dovetail marketing database solution supports customer segmentation at two primary levels. The first is customer segmentation at a granular level, whereby a user can select items such as age range, gender, or range of dollar amounts spent. These can be selected independently of one another as part of the customer segmentation process. The second way to execute customer segmentation is at a custom business rule driven level whereby predefined groupings can be derived as part of marketing database development and its related update processes. For instance, a Dovetail client may say they want married females, between the ages of 25 and 35, with household income between $50,000 and $75,000, who have spent at least $250 on apparel in the past year grouped into one consumer segment. Other similar segments can be derived and used for section and analysis in the Dovetail Application marketing database software. Advanced segmentation, behavioral segmentation, and third-party customer data segmentation are robustly supported via Dovetail’s marketing database solution and database marketing software.
Predictive Model Scoring and Application
If your organization utilizes customer segmentation models, the marketing database solution and marketing database software enable the use of these models for selection and analysis purposes. Once a predictive model is built, the model algorithm is incorporated into the marketing database update processes, generating model scores each time the marketing database is updated. Alternatively, Dovetail can create a marketing datamart built specifically to support modeling and advanced analytics. Using this marketing datamart, clients can build models, score the data according to these models, and provide model scores to Dovetail as a data feed into the marketing database update process. By applying the client’s business rules in the marketing database software, Dovetail enables the client to select and analyze on raw scores, deciles, or duo-deciles.
Other ROI Drivers
The marketing database system integrates data and makes it easily accessible. Once established, database marketers have a platform from which to test, analyze, learn, and implement. The marketing database system provides the ideal framework to support this ongoing, ever-improving process. Examples of items that drive revenue increases and cost decreases consist of the following:
- Thorough data hygiene, marketing data quality processes, and data validation techniques ensure that marketing data is pristine and ready-to-use.
- Marketers actually perform database marketing functions instead of spending time chasing data and working with problematic data.
- Database marketers embrace and routinely use an environment built specifically to support them and their needs.
- IT has the burden removed of dealing with problematic systems, customer data quality issues, and other requests related to database marketing.
- Data is managed at the unique individual, household, address, email, phone, account, and any other level that a client requires. Costs relating to duplicates and waste are eliminated.
- Costly traditional merge/purge is no longer necessary. Data is integrated into the marketing database and data extracted from the marketing database is cleansed and de-duplicated. Counts from the marketing database are precisely accurate and equal to the quantity actually delivered.
- Precise targeting reduces delivered quantities, resulting in cost decreases. Simultaneously, higher response rates, reduced fatigue, and increased relevance lead to revenue increases.
- Multi-channel contact strategy is determined and optimized, including contact sequence, channel combinations, resting periods, and ROI by segment.
- Chronic non-responders are identified and suppressed from further marketing efforts.
- Analysis and reporting provide actionable insight to an organization’s data.
- Automated lists/triggers increase marketing performance and remove the burden of manual processes from IT or Marketing staff.
- SMS can be integrated as a highly profitable channel for the right segment of customers.
- Social media data can be integrated with more traditional channels, increasing response.
- Spontaneous multi-channel marketing offers can dynamically be deployed into the marketplace with speed and precision.