Appearance of new concepts such as Datamining or fullfilment, in response to the use of customer information
The explosion of new technologies that began with the introduction of the PC and the arrival of the Internet in the nineties, has given marketing new options and tools that are exploited with great intensity today. One of them is the use of information instruments in the generation of databases.
In this article, a brief explanation of the so-called "database marketing" will be presented, which is simply the use of customer-focused databases (information).
The importance of having databases:
Knowing customers and their preferences is a vital resource in product development and sales strategies. Being able to know exactly the basic data of customer segmentation (sex, age, basic preferences etc) and perhaps being able to go further in the knowledge (personal preferences, hobbies, basic tastes, preferred brands) are very valuable resources for companies.
The data collected from customers will form customer bases, registered users and potential buyers, who will be able to receive updated information on products and services offered.
In this environment, the collection of databases will help companies to:
- Maintain constant communication with customers (mail, telephone, mail, etc.) Know the purchase trends of the target market Personalize customer service. It is important to note that "personalization" is considered the fifth P in the marketing mix. Generate branding and advertising strategies. When we are offering, we are generating constant publicity at the same time. Use specific customer segments to place specific products reaching the buyer or user directly. Comment on news, promotions and news related to the business and some occasions with the sector to which the company is dedicated.
In short, maintaining databases is a very valuable information instrument that can be used effectively in generating sales and profits.
Knowing customers When customers' preferences, their income and consumption levels and especially their tastes are known, valuable information is generated that creates competitive advantages.
The new information management instruments:
Having and managing databases with clients implies an information problem, which generates storage, security and use considerations.
Faced with these problems, new processes and technologies appear that seek to meet the information management needs of companies. Then new concepts are born that will be applied to the management of large volumes of information:
Datawarehouse: It is simply the term for "storage of volumes of information." It consists practically in the use of storage systems in electronic or magnetic media under an environment of security of the information collected.
Fullfilment: Basically they are loyalty strategies, through constant communication and feedback, seeking the greatest comfort of communication to the client and seeking to improve sales levels.
An example: A customer loyalty strategy is to make registered users of a company participate in contests. Many times we find buttons on the Internet that say: "Sign up and you can participate in the raffle of fabulous prizes", and then receive information about specific products.
Datamining: It consists of extracting information from existing databases to use them for specific purposes.
An example: A company wants to launch a product for children, and wants to search its database for people who have children between 5 and 15 years old.
At the same time, complementary concepts such as e-mail marketing, new information systems in marketing (SIM), ethics in the management of information on the Internet, etc.
The problems with the use of databases:
Using databases creates some problems, especially from a consumer point of view:
Lack of security: It is very difficult to guarantee at present, complete security in the handling of the information that companies collect and it is difficult to be 100% sure that the data provided by the consumer will be used only for the purposes for which they were delivered. data.
Reliability:
The data collected is not always completely reliable, many times users, because they do not compromise its integrity, use inaccurate data and are not entirely sincere. This is a typical problem in Banks, where inaccurate information is sometimes provided about income levels, debts, etc.
Ethics: A serious problem is the handling of information by database administrators, sometimes preferences for individual products and inaccurate information lead the consumer to choose products of poor quality and with specifications that are not clear.
To end:
Those responsible for the commercial communication of a company must always remember the importance of keeping a satisfied customer. Being abusive in the handling of information, disturbing a customer or sending information of little interest to him instead of being a motivator for purchase can lead to the loss of customers and deterioration in the image of the company.
The management of a database must be very prudent and professional.
Notes, sources and resources
- What does Datamining and full filing consist of? E-MAIL MARKETING, AN EFFECTIVE TOOL UNDER CERTAIN CHARACTERISTICS TELEMARKETING AS A MEANS TO BE EFFECTIVE?
