Customer database – This is an organized collection of comprehensive data about individual customers or prospects including geographic, demographic, psychographic and behavioural data.
Database marketing – This is the process of building and maintaining customers data for the purpose of contacting and transacting with the customers. It is commonly used in B2B and service retailing (hotels, banks and airlines). It makes use of a customer’s mailing list – a set of names, addresses, telephone numbers etc and customer database-contains much more information e.g. past purchases, personal information, family information etc.
The database kept by the firm assists in,
- Identifying the prospects.
- Deciding which customer should receive a particular offer.
- Deepening customer loyalty (i.e. information, gifted).
- Reactivating customer purchases (knowledge of past purchase is kept, gifts, certificates and promotion.