• Unit 7: Database Marketing and Customer Relationship Management

    Imagine you work for a business. You have a new product line that should arrive this month. You need a marketing campaign for surrounding neighborhoods. However, it is costly to advertise to every person in the surrounding areas. Thus, it is beneficial to apply a direct advertising technique. This should reduce costs and produce a more effective marketing campaign. Database marketing is a direct marketing technique that uses customer data to create direct communication. Therefore, database marketing allows businesses to generate customer lists based on similar product purchases. Businesses use previous purchase behaviors to predict customer interest in the new product.  Database marketing requires interaction with customers. This relationship is known as customer relationship management (CRM). CRM is a technology that manages interactions between the business and the customer. Thus, CRM technology establishes connections to customers through direct marketing, sales, customer service, and support. We will examine database/direct marketing used to model customer acquisition and retention and the concept of lifetime value (CLV).

    Completing this unit should take you approximately 3 hours.

    • 7.1: Database Marketing

      Database marketing is a data collection technology used to understand customer needs. It is all about leveraging customer data to deliver personalized, relevant, and effective marketing. Implementing large-scale marketing campaigns is not a new concept. However, database marketing technology has made large-scale marketing more efficient and practical. 

      There are two practical factors for database marketing. (1) Technology that allows for collecting enormous quantities of customer data, and (2) powerful statistical technologies that analyze customer data to better understand their wants and needs. Proper customer databases will include names and addresses, phone numbers, e-mail addresses, purchase histories, product requests, and any other data that can be legally collected.

    • 7.2: Customer Relationship Management (CRM)

      B2C relationships are built by establishing business principles, guidelines, and best practices. B2C utilizes CRM to establish relationships by improving direct interactions with customers.

      • 7.2.1: Components of CRM

      • 7.2.2: CRM in Industry

      • 7.2.3: The Relationship between CRM and Customer Lifetime Value (CLV)

        The lifetime value of a customer, also known as customer lifetime value (CLV), is the total amount of money a customer is expected to spend on a business' products or services during their lifetime. CLV is an important metric to measure customer relationship management (CRM). CLV reveals how well customers like your product or service. Decision-makers can make informed decisions and grow their business using CLV metrics.

    • Study Guide: Unit 7

      We recommend reviewing this Study Guide before taking the Unit 7 Assessment.

    • Unit 7 Assessment

      • Receive a grade