Long before terms like CRM or one-to-one marketing were coined, Mail-order Sales focused its business on the client, using a well-targeted and personalised communications strategy as its central marketing tool. The information structure is appropriate and consistent: for Companies, in addition to the management archives, the Client archive, which is already structured on the basis of univocity, is paramount.
So what are the problems and the needs that lead to the search for new methods and solutions?
Demand arises out of the need to utilise large masses of data which are properly managed from a structural and personal data point of view, but which are lacking in socio-demographic information, and are unavailable on the market. Greater competition of the distributive market forces you to reduce the product margins which can be covered only by the optimisation of marketing costs.
The real need, then, is to gain the ability to utilise the information in one’s own database to create behavioural segmentation, to contact only those clients with a high purchase probability, to invest on each client a marketing cost in proportion to their profitability level, to unearth niches, to send the promotional message at the right time and, lastly, to know our client’s life-cycle in order to predict the evolution of our database and to renew it, using external lists.
In summary, it is an exercise in Data mining which supports the Marketing Management, allowing us to reduce the marketing costs without reducing the number of clients and their purchases.