Do you Database? Do it Right!
Database marketing is precision. Plain and simple.
“The foundations of virtually all the capabilities that
differentiate direct response marketing
from mass media marketing reside in the marketing database.”
– Page 101 Internet
Marketing – Integrating Offline and Online strategies
Effective use of your customer database allows for more
precise market segmentation, and accurate prediction of customer and prospect behavior.
“I have a very
comprehensive database with more demographic and lifestyle data on my customers
than I will ever need!”
Here's the thing, as marketers, we need to take a holistic approach to our decision
making process. The information we use to make decisions must follow suit. Thus, the
database we need is not JUST demographic and lifestyle data about our
customers.
We need EVERYTHING.
This database MUST combine several individual databases into one,
functional data warehouse that depicts
a total landscape of your business. If not, you are missing a large part of the
picture:
Take, for example, Mohawk College.
Mohawk College is a large organization with many departments that use separate databases and, in some cases, even utilize
different software packages.
Just to name a few...
College Staff:
Administration, Support Staff and Faculty
Students:
Current Students, Co-op Students, Gradute Students, Mohawk Students Association, Banner, Co-op/Job Centre, Program Specific, Disability Services, Continuing Education, Locker systems.
Alumni:
Alumni Association database, Graduate Employment Rates
Marketing and Recruitment Prospects:
High Schools, Guidance Counselors, Community Centres, Continuing education Prospects, Full Time, Post Graduate ProspectsOther Business Areas:
Program enrollment trends, Residence information and Trends, Meal sales (meal plans etc), Book Sales
External Data Sources
Census data
per geographic regionHighschool graduate data
....and this is not even close to the whole picture.
Think about all of the information contained in these
databases. Think of how cumbersome the decision making process would be if we
couldn’t make them work together.
How would Mohawk make decisions regarding additional
residence space without comparing geographical demographics? How would Mohawk
make program and course ordering decisions without cross referencing enrollment?
Obviously, making all these databases talk to one another is
a technical challenge. And as marketers, we are not generally responsible for
creating the database, but it is our job to decide what information is valuable for
the decision making process, and drive its creation, based on that information.
How do you think Mohawk is doing? Do you think we can do better?
An interesting read on CRM (Customer RElationship Management) Retargeting:
ReplyDelete"What Facebook's Phone and Email Targeting Really Means.
-A Big Boost for the CRM Industry and Marketers With Data"
By: Travis May
Published: September 13, 2012
http://www.nextmedia-source.com/frame.php?id=5500722
Facebook weighs in on CRM Retargeting.
"While the concept of CRM retargeting is not new, Facebook's offering does highlight the revolution in the market with new dimensions: radical simplicity and mass market appeal."
considering the amount of work needed to integrate all of the databases together or into one huge database, it seems that Mohawk is doing fine. even though many departments use different databases, they can still connect via other means such as email or in person.
ReplyDeletehowever, when deciding what programs to offer or other major decisions, connectivity between the databases is a necessity. in some cases, mohawk could definitely use some work. if a student went into the engineering deparment to ask a quick question about the busniness program, they would be out of luck because of a lack of information sharing.
I realise that it is a bit of a loaded question to ask "How is Mohawk Doing? Can we do better?"
DeleteMost of us have no clue about the interworkings of the various information systemts in place.
As a former employee of Mohawk College, I have a little bit of insight...it's a work in progress.
But I do think it is a decent example of to start thinking about that process.
With so much data coming from an organization of this scale, while technically possible, is it realistic (or even profitable?) to combine them all into one?
If not, what makes the cut?
How do we get deparetments to share information when "it's not my job!" and you cannot make them see your grand marketer's vision that encompases the entire organization from the ground up! lol
Those are some very good points you make Dan regarding how database marketing is precision rather than just a simple matter of collecting averages or basic demographic and life style traits. Mohawk College is an excellent example of a business that relies heavily on database marketing. In the past many businesses were focused on generating sales by offering their customers products at a low price accompanied with the best possible value for that price.
ReplyDeleteThat old way of business is becoming obsolete. Customers have higher expectations regarding the price, value, quality, and convenience. So basically to satisfy this demand by the customer of today, an institute of education like Mohawk College should be analyzing and gathering data regarding these factors that impact their business in order to improve student(customer)retention. They need to constantly evaluate what the students’ likes and dislikes are regarding their college experience, questions, concerns, etc. I believe the college dose a decent job reaching out to the students, but there is definitely room for improvement.
Mohawk College does a great job of communicating with students regarding important payment dates and deadlines, but they should put forth a better effort and consistency with their online surveys for two reasons: to gather more data about the student population, and to interact with student population on a more personal level. At times I feel this college can be very distant and give off the vibe they are more concerned about the money they generate than satisfying the needs and wants of the students(customers).
I agree with you on the fact that having all databases at the college become 100% connected with one another would be a technical challenge. If they could accomplish that I wouldn’t feel so bad about handing over $3,000 a semester lol. It would make everyone’s life a hell of a lot easier. Have a great weekend everyone, cheers.
Brad Martin
"to satisfy this demand by the customer of today, an institute of education like Mohawk College should be analyzing and gathering data regarding these factors that impact their business in order to improve student(customer)retention."
DeleteBrad, I couldn't agree more. And while I do think that Mohawk, on the whole, has done a great job improving communications (of all kinds) to its students in recent years, there is still room for improvement.
For Example: As a student borrowing OSAP to afford education, it might stand to reason (to me anyway) that I would also need that OSAP to afford the near $1000 my books are going to cost me this semester.
Tying this together with marketing decisions and with concerns for Retention (which is a HUGE, HUGE problem for Mohawk)...
..I might take a look at the sales data (by program) from my bookstore and say that x% of students are able to purchase their books before semester start, x% within a few days of semester start, and x% at week 2 or week 3(waiting for OSAP funding).
I might compare that data to my registered and enrolled students that are collecting OSAP, academic grade reports, and probably statistics regarding dropout rates.
Maybe then, I would try to put together a picture of the effect that not being able to purchase books for the first 2-3 weeks of classes (Starting off at a significant deficit and forced to play catch-up) has on grades, dropout rates etc...
..In other words - How is this problem effecting out Customer (Student) Retention.
If I was a betting man, I would bet serious money that I would find a correlation.
If so, what is the solution?
Were I in the position to make such decisions, I would give serious thought to setting up a deferral program for text books the very same way they do for tuition.
If I need OSAP to pay my tuition...there might be a good chance I'm going to need it to pay for my books as well.
In terms of inventory, it doesn't really seem to me that it would change much either. The books will still be ordered for the class - no difference. The people who NEED OSAP to pay for their books will still be paying for them at the exact same time as they would without a deferral plan - When their OSAP comes in.
The only difference is...I get to start the semester with all my books and am not forced to give myself a heart attack playing catch up from week 3 onward.
Interesting post! I believe Mohawk is doing a lot better job than the neighbouring colleges and universities. While there are still loads of flaws in the way Mohawk conducts its operations, you wouldn't believe how sloppy and stressful it is to work around the resources at McMaster.
DeleteObviously the integration of Mohawk's database has helped it overcome a lot of the barriers created with the direction of making 1/3 of class studies online, but I feel it needs to use this information to better understand how their students spend their time online and how to better suit this change in direction to reflect that.
thats a great idea dan regarding a deferral program for students who are short on money and are in dire need of textbooks. By implementing a student(customer) service such as this it would definatly improve student(customer) rentention because a service such as this would show the student population that Mohawk understands and cares about students(customers)tight financial situations.
ReplyDeleteAnd I agree with you on the fact that this type of service would eliminate the inital feeling of being stressed due to the fact you feel behind because you are without books because you cannot a afford them at the present time.
Bottom line if they students are happy with their educational experience it will decrease the chance of losing students(customers) and retaining more and more in the future.
good article bud
Excellent essay!
ReplyDeleteIt's a little pity that we marketing program students don't have any info classes to learn how to build database officially, or it will be really interesting and useful. We could even use it to form a ourselve-centred social community by recording and selecting data from customers, colleagues, classmates and relatives and it undoutbly would make our work easier.
Ya i think we need to be taught more on database and how to build it it can help us with more recognition within our customers, etc , and i agree Delun it will make life much easier.
ReplyDeleteDatabase marketing is definitely becoming a rising star within marketing. People expect marketing to now be directed and crafted specifically for them, with mass marketing being a far less effective way of marketing. The internet and computer technology in general has made a vast impact on this, as people receive e-mails based on what they have purchased, checked out, or even viewed online. They also see ads specifically tailored for them based on what they have liked on social websites.
ReplyDeleteWith a strong and well-communicating data base, a large corporation can maintain personalized advertising, marketing, and personal selling, by having exceptional data management skills.
Agreeing with eric's comment, database marketing is definitely a hidden gem if it is properly utilized. With the use of the internet continuing to grow, and people using it for both needs and personal use, businesses and corporations can take advantage.
ReplyDeleteFrom the list you provided it would seem that Mohawk is already doing a good job utilizing database marketing, your post defiantly gives excellent insight on how database marketing can be used, I particularly liked the bit on how marketers should approach it, overall an excellent read, good job.
ReplyDeleteI was involved in database marketing when I worked as a beauty adviser at the Bay. We collected information from both potential and current customers. The database that we created was a book containing both demographic, and psychographic target market information. This also allowed us to keep track of consumer purchases and products on order for individuals.
ReplyDeleteNice Post Dan, from your list i can see that Mohawk is performing well in database marketing, the database marketing could provide insights into the customer’s buying behavior across the product categories, so that the companies could devise their programmes and plans to the “whole customer”, then the customer seen only through the narrow view of their own products and brands.
ReplyDelete