This was the title of an article in the Peppers & Rogers e-mail newsletter. Peppers & Rogers were the leaders in promoting the value of database marketing.
Perhaps naively I expected the article to be about the 50+, but I was totally wrong. Instead it discussed how companies are chasing the teen and ethnic market – particularly true in the US.
The article advised its readers not to rush to add new “demos” (I assume an abbreviation for demographic groups) to their database. The reason for posting this article was the writer’s rationale for this conclusion. This is best summed up by this quote:
"We still don't see a lot of database clients that are rushing to add new demos to their list," says Experian marketing VP Chandos Quill. Most of our clients are a step before that. They want to know as much as possible about their customer segments. They want to know what those segments are, how they can market to preferred channels and how they can add value to their database by analyzing purchase data.
In time tools such as predictive modelling will make efficient use of new demographic databases. She also believes new demos are a worthwhile area of value growth after clients get the database basics mastered.”
I think this is a very long-winded way of saying that most companies don’t understand the structure of their existing customer database and until they do it is pointless adding more data in the form of contact data of specific demographic groups.
That is a depressing conclusion.
Dick Stroud: www.20plus30.com
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