About database marketing
Predictive or database marketing refers to the various techniques used to process and model customer behavior so as to anticipate future actions based on past behavior.
Part of the Marketing 3.0 generation
The big data and digitalization boom has given rise to new marketing techniques, the aim being to increase conversion rates and ROI and/or manage customer relations. These techniques make up what is known as Marketing 3.0, which is a new, more emotionally-oriented kind of marketing.
Although analysts have been making predictions based on traditional analytical techniques (based on specific marketing research criteria) for some years, today specific algorithms have been developed to anticipate human behavior.
It can be applied to different domains, however database marketing is particularly appreciated by companies working in e-commerce or who have at least one website or social media page. Purchasing data is factual and when analyzed, it is possible to anticipate future purchases.
Google is watching you…
You may or may not be aware of the fact that Google uses a ‘Predictive marketing engine’, in order to score you as an internet user. Indeed, data concerning all customers (email, websites consulted, cross-canal behavior)… is very closely analyzed in order to build a score and create a marketing model for each internet user.
Another example: Amazon has gone one step further by preparing customer parcels before they have even ordered the goods from the website!
A golden opportunity for car dealers
In the automotive distribution world, car dealers have a minefield of precious data in their possession. It can be used to increase customer loyalty and hence increase revenue!
In France, DATAFIRST proposes such a module as an add-on product to its Eris Motors DMS solution. The module is called Eris ‘Up and it uses after-sales invoice information as well as other relevant data like the manufacturer maintenance guide in order to build an intelligent marketing action plan to get customers back in the workshop.
The module goes so far as to propose the different letters to be sent to customers. It might be for new tyres, brakes, to have the air conditioning serviced etc… Dealers receive detailed reports with campaign results.