POV Assignment - Momal Rabel.pptx

Point of View

1. Point of View Assignment Momal Rabel Student ID: 137811220 MKM 916 SBB Professor Christopher Briggs Date: June 11, 2023

2. Table of Content Database Marketing - 4 Sources of Customer Information - 6 Purpose of Data Collection - 5 Types of Data Collected- 7 Point of View - 8 Huckberry Case - 14 Appendix- 15

3. Database Marketing for a Small Company? We will get back to that! 3

4. Database Marketing “Database Marketing is a systematic approach to the gathering, consolidation and processing of consumer data” Gillis Database marketing is a strategy that involves the use of a company's customer database to guide marketing and promotional activities. Database marketing can be applied to marketing programs that are aimed at: Acquiring New Customers Retaining the Existing customers 4

5. Learn more about customers Customer Segmentation Compare Customer value to the company Provide specialized offerings Analysing information according to the segments, comparing customer value with the company and then providing specialized offerings to fulfil customer value Digging deep into the data to gain customer insights and then developing customer segmentation Purpose for Data Collection 5

6. 01 03 07 05 Sources of Customer Information used in Database Marketing Website or app activity (pages visited, products browsed) Loyality Program Data Location Data Correspondence History (records of all interactions between customer and brand) Demographic Data Purchase or spend history 02 08 04 06 Acquisition data (site visits, timings, channel) Social Media Activity (app ratings, topics and brands discussed) 6 Campaign Response history

7. Types of Collected Data Customer Names Addresses Emails Purchase history Job titles Website cookies Phone numbers Customer support tickets 7

8. POV: Why Database Marketing for Small Companies? Regardless of the size of the business, database marketing is essential in today's world. Whether it's a small or large company, effective database marketing has become a necessity, particularly after the pandemic. With the shift towards online purchasing by customers, the data generated from these transactions has significantly influenced the way businesses operate, market their products or services, and manage their supply chains. Database marketing provides the following benefits to small: Personalization Customer Segmentation and Profiling Setting Goals for Future Reduced Cost of Advertising Customer Empowerment through long-term relationships 8

9. Personalization is the tailoring of marketing messages and experiences to individual users based on their preferences, behaviors, and demographics. Personalization is a very useful strategy as it helps in building deeper connections with customers and improves the effectiveness of marketing campaigns. Database marketing is extremely important for small businesses to help them understand their consumer needs and to provide them with tailored solution through personalized marketing campaigns. Person alization 9

10. Customer Segmentation and Profiling Grouping customers based on common characteristics, such as demographics, interests, or purchasing behavior, to target specific segments with relevant marketing messages. Creating detailed profiles of individual customers by analyzing their past interactions, preferences, and behaviors. This information helps in understanding customer needs and developing targeted marketing strategies. This is even more important for small businesses because they will be able to fill the gap by projecting their products to their specified target audience. 10

11. Setting Goals for Future By leveraging data, company can set its future marketing goals. By looking at the data collected from customers and as a result of a marketing campaign, company can make the following data driven decisions: do we want to keep more customers coming back get them to buy from us again or attract new customers? Setting goals: Once clear goals are set, the company can proceed with the relevant marketing efforts. The goals should be related to keeping customers, getting repeat business, or bringing in new customers. 11

12. Reduced Cost of Advertising Small companies often have tight budgets. They can benefit from database marketing, which is a highly effective strategy for using collected data to create targeted campaigns while reducing advertising costs. Advertising can be expensive and risky for small companies. By leveraging insights from collected data, companies can make informed decisions about their marketing activities, helping them mitigate risks and optimize their marketing efforts within their budgetary constraints. 12

13. Customer Empowerment The biggest advantage that small business can take from database marketing is that it can build long-term relationships with the customers by empowering them through personalization. It gives customers the power to control and customize their experiences based on what they like. Whether it's getting suggestions that are tailored just for them, customizing products to their liking, or receiving special promotions, customers enjoy having the freedom to choose and make their interactions with businesses more personal. 13

14. Huckberry - A Small Company using Database Marketing Huckberry is a small online retailer based in the United States. They specialize in outdoor and adventure lifestyle products. Huckberry collects customer data through their website and email sign-ups. They use this data to segment their customer base and send personalized emails with product recommendations, exclusive offers, and relevant content based on customer interests and preferences. 14

15. Citations: Peters. B, How Huckberry Went From $10,000 To $1,000,000 Revenue In One Year, SUMO , April 19, 2019, https://sumo.com/stories/huckberry-brand-story Huckberry - A deeper dive into their marketing, Stacked Marketer , Accessed Date: June 10, 2023, https://www.stackedmarketer.com/wp-content/uploads/2021/08/Huckberry-Deep-Dive-Preview.pdf Gillis, Alexander S. “What Is Database Marketing?” TechTarget - Customer Experience , 30 Nov. 2022, www.techtarget.com/ searchcustomerexperience /definition/database-marketing#:~:text=Database%20marketing%20is%20a%20systematic,maintained%20in%20a%20company’s%20database Database Marketing, Optimove , Accessed date: June 11, 2023, https://www.optimove.com/resources/learning-center/database-marketing 15 Appendix