CRM adoption and implementation proposal

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1.0 Types of Databases

Categorization:

• Based on their main business functions

  • Databases managing business operations

  • Databases supporting decision-making activities

Alternate categorization:

• According to the information included in the databases

• Based on the nature of the underlying marketing activities

• Based on the database technology used

2.0 Categorization Based on Information in the Databases

Types of databases:

• Customer database

• Prospect database

• Cluster database

• Enhancement database

2.1 Customer Database

• Data from active and inactive customers

• Basic information: name, address, zip code, and telephone number

• Demographic information: age, gender, marital status, education, number of people in household, income

• Psychographic information: values, activities, interests, preference

• Transaction history: frequency of purchase, amount of spending

• Other relevant information: inquiries and referrals, satisfaction, loyalty

• Data from inactive customers:

2.2 Prospect Database

• Non-customers that have profiles that are similar to the profiles of existing customers

• Segments prospects and positions the company’s differentiated products to the prospects’ specific needs

• Examples of some Prospect databases used in the industry:

  • The InfoBaseR list

  • Harris Selectory Online

2.3 Cluster Database

• Clusters defined based on geographic reference groups, affinity groups, and lifestyle reference groups

• Depending on the membership of prospective customers to specific clusters, firms can customize their marketing communications

• Example: The Prizm database which Segments every U.S neighborhood into 62 distinct areas

2.4 Enhancement Database

• Used to transfer additional information on customers and prospects

• An overlaying process is used that eliminates duplications

• Enhancements may include demographic and psychographic data, transaction history, changes in address, changes in income levels, privacy status, new product categories bought recently

• Example: InfoBaseR Enhanced which provides a large collection of U.S customer information like telephone & address data, mailing lists including hotline files, e-mail data