Database marketing is a systematic approach to the gathering, consolidation, and processing of consumer data (both for customers and potential customers) that is maintained in a company 's databases.( Rouse, Margaret)
The reason will be subject to a number of database marketing enterprises of all firms, with obvious advantages of database marketing are inextricably linked. It can help companies pinpoint the target consumer group, can reduce marketing costs, improve marketing efficiency; allows consumers to become long-term, loyal customers; can provide accurate information for marketing and new product development; you can use the database and consumer who established close relations, corporate consumers can no longer turn to other…show more content… Due to the use of client database to accurately identify the target consumers of a product, companies can avoid the use of expensive mass media, you can use more economical promotions, thereby reducing costs, enhancing the competitiveness of enterprises. Relevant statistics, there is no use of database technology to screen and send junk mail, the response rate is only 2-4%, while the use of database technology to screen clients, it 's junk mail response rate can be as high as 20-30%.
Second, enhance customer trust, so that customers become loyal long-term users of this product to maintain communication and contact with database marketing and consumers often can maintain and enhance the emotional bond between businesses and consumers. Also, corporate information database according to the client is able to analyze what kind of people, what measures can be taken to retain customers. In addition, the use of storage consumption records to infer its future customer behavior with considerable accuracy, so that enterprises can better meet the needs of consumers, so that consumers become long-term, loyal customers. For example, an airline, the data memory 80 million people each year who want to take an average of the company 's flight up to 13 times, 65% of its total turnover. Therefore, every time the company held a