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The demand for database marketing, particularly those with a membership
program, has been phenomenal among leading corporations. Uni-net has
developed a system that helps our clients combine profile and behavioral
data for a wide range of operations covering marketing, relationship
management and marketing intelligence. Our system for database marketing
is shown below.
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| Database management for marketing
operation |
Uni-Net offers a host of database services in the marketing area as shown on the following diagram:
Review
the current database |
| The database of members generally
includes the member’s personal profile, op-in (permission
for mailing) items, contact data, and product-usage data. |
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| Personal
profile data: Names; date of birth
or age , sex, marital status, contact address, telephone, e-mail
address |
| Op-in data: subscription
to newsletters, product information and e-DMs |
| Usage data
(frequency of usage): by product
and by occasions |
| Brand ownership
and usage data: by competing
brands, switching patterns |
| Marketing
data: Participations in promotions
and events, participation in online surveys |
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Develop
database marketing strategies |
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here are 3 basic strategies for compiling a mailing list for a different type of marketing campaign. They are 1) permission marketing (using only opt-in items), 2) target marketing (including area targeting) and 3) personal messaging strategy.
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Opt-in is important not only because consumers demand corporations be socially responsible but also this practice prevent the company from inviting a negative image.
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Target marketing is essential because members come from various regions with different needs and buying powers and behaviors.
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| Personalized messaging strategy: |
The personalized messaging technique has been proven to be a very useful online marketing tool, as different marketing messages are prepared for different e-mail targets.
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Develop
database marketing strategies |
The next step is to review the current computer system's capability of operating the database to meet the requirements of the established strategies. Necessary modifications will be recommended if the existing features and functions are found to be insufficient. Items to be reviewed are as follows:
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| Mailing
list management software (functions and features) |
| System-load
relating to server activities (server capability) |
| System-load
relating to mail delivery (network capacity) |
| System
security |
| Features
and usability for administrators |
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Our
group has dealt with many database management systems in the past,
and would be able to offer our clients many improvements.
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| Database management for CRM operation |
CRM operation is another area of database management that is widely adopted by major consumer goods companies. The following diagram outlines what Uni-Net offers in this area:
Data requirements for CRM operation |
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All personal data, opt-in
data and usage data currently available for marketing operations are
also available for CRM operations. In addition, survey and voting data
from members can be stored in the database for feedback mail to members.
Various types of greeting cards can be prepared and stored in the database
for e-greetings to members.
When a loyalty program (point rewards) is to be implemented, all account
information of each participating member must also be stored in the database. |
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System
support for the CRM operation |
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All the system features
and functions for marketing operation are also
applicable here. Additional backend programs are needed to process survey-
voting data as well as downloading of greeting cards for sending to member. |
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Establish
CRM strategies |
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There are four strategies
for database CRM operation: 1) proactive strategy,
2) one-on-one personalized strategy, 3) interactive and participatory
strategy,
4) rewarding strategy. These strategies are described as follows:
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| 1) Proactive strategy: |
| We want to make “customer satisfaction” as
our major goal and make it work through database operation. We
will take
the initiative in communicating and dealing with members from our
side through planning and implementation of effective CRM programs |
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| 2) One-on-one personalized strategy: |
| Communications with members will
become more and more personalized. Greeting cards (birthday
and New Year), for example, make a personalized approach very effective.
As we establish a reward program for our members, the CRM operation
will
become even more personalized. Addressing our members with their names
in e-mailing or in messaging will also contribute to personalization.
Beauty
and skin care consultation only for members can also make this operation
more personalized |
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| 3) Interactive and participatory strategy: |
| Surveys and opinion polls are important part
of database CRM operation. They can make our members feel that we
care about them and that they are a part of the Olay family. Participation
in a loyalty program (reward program for example) too can bring them
closer to our brand. |
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| 4) Reward strategy: |
| Communicating with members alone is not enough
to make CRM program stand out. Granting rewards to loyal customers
is a practical way to strengthen brand loyalty. Point accumulation
for rewards is a popular and effective loyalty program that should
be considered for implementation. Distribution of e-coupons may also
be considered in the future in conjunction with marketing operation. |
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Implementation
of database CRM programs
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Distribution of e-newsletter:
Uni-Net undertakes content authoring It will also be responsible for
mailing.
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| Surveys and opinion polls: |
| Surveys and/or opinion polls of members’ reactions
to new products, customer satisfaction with regard to company’s
policies and marketing programs, or even solicitation of new ideas
from members are all important for the database CRM operation. |
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| Greeting cards program: |
| Sending a birthday card and New Year’s
greeting card to members will be an added attraction. These cards
will be prepared with a personal message. Greeting cards for various
occasions can also be prepared on the web-site for use by the members. |
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| Loyalty program: |
| We also help our clients offer a loyalty program
to their members products. Such program offers various rewards to
the members for purchases or participation in promotion and events.
Offering of incentives for visiting the website has also become popular. |
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Database management
for marketing intelligence operation
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Marketing intelligence
operation has become an important part of brand management as market
competition intensifies. A pool of 1 million members together with additional
surveys and opinion polls provides us with an excellent basis for generating
market potentials and product ideas, making possible marketing analyses
and evaluating customer satisfaction. These intelligence data are then
fed back to the brand management and related corporate staff. The recommended
scheme for this operation is outlined below:
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Organize the current data sources |
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The
first step in intelligence operation is to organize all the data available
from the member database.
These are demographics, geographic, product usage and brand preference
data. Olay has standardized this set of data collection throughout
the world, and any supplementary information must be obtained through
surveys and polls. The current information set offers the possibility
of many useful analyses.
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Collect
additional information from surveys, opinion polls and self-diagnosis |
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These data are used
to make product recommendations. Although these data can be analyzed
independently, they are not directly integrated into the member database
to yield in-depth information about members.
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Integrate
survey and poll data into the database |
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Integrate survey data
into the current database. This requires a comprehensive plan for data
integration, taking into account the information load and the system
capability. |
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Establish
marketing intelligence strategies
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There are three strategies:
1) management-driven strategy, 2) systematic development strategy and
3) web-based real time strategy.
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| 1) Management-driven strategy: |
| Marketing intelligence operation must be intended
to support decision-making, meaning that it will have to be management-driven.
This is particularly important for a product management company such
as P & G. |
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| 2) Systematic development strategy: |
| There is a wide range of intelligence tools
that can be developed. However, the development work must be well
planned in order not to produce anything impractical. We suggest
the development of descriptor and analytical levels of intelligence
in 2004 and of predictor level in the following year. |
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| 3) Web-based real-time strategy: |
| Since intelligence information can be used
by authorized persons anytime and anywhere, it should be backed up
by a backend system over the Internet. |
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Micro and macro analyses |
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| Profiling of selected targets (micro): |
Profiling of heavy users
Profiling of loyal
users
Profiling of heavy users who use competitive products
Plus
all other profiling analyses |
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| Analyses (macro): |
Demographic distribution of the members (cross
section)
Demographic distribution of the members (cross section)
Users analyses (non-users, light users, moderate users and heavy
users (by age, region and other variables)
Brand users analyses (Olay
and competing brands (by age, region and other variables)
Brand satisfaction
analysis |
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| UTA analysis |
Promotion and price sensitivities analysis
Web-site traffic analyses of members (total page views, home-page
visits and pages visited by section)
Plus all other analyses
as determined by the brand manager.
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