By Merlin Stone
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Additional info for Consumer Insight: How to Use Data and Market Research to Get Closer to Your Customer
Qxd 02/09/2004 1:58 pm Page 35 What is Database Marketing? summarizing it, vital FRAC detail might be lost. So the details of each purchase for each consumer must be logged. This includes not only the obvious ‘identifying’ details (who bought or returned what, when, how), but also the associated marketing data (at what price, from which promotion). Transaction data is usually more effective as a basis for selection for promotions than geodemographic variables, based on electoral, census, credit and other third-party data.
Scoring Consumers are given a score by identifying their characteristics and correlating them with their likelihood to respond, buy or whatever. This makes it possible to create a ‘scoring module’ or ‘directory’ for selecting target consumers from any larger file. Scores are usually derived from tests. This is based on the idea that when a consumer is identified as belonging to a particular group, it can usually be assumed that the consumer has the same likelihood as other members of the group of buying a particular product.
To do this, you should start with a test, and find out which kinds of consumer respond the best, ‘score’ them, and focus future promotions on consumers with good scores. In Internet marketing, new types of consumer data are available. Here are a few examples: ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ ■ cookies sent or installed; Web passwords; Web user login; e-mail – outbound promotions; e-mail – outbound promotion – response; e-mail – inbound; Web site visit; pages viewed (Web log file data); ads/promotions served; ads/promotions – response; Web user input – orders; Web user input – information requests; Web user input – questionnaire data; Web user input – call back request; Web user input – text chat question; referring or source site.