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Database Marketing

Database Marketing

Database marketing emphasizes the use of statistical techniques and data analyses to develop models of customer behavior, which are then used to select customers for communications. The benefit of database marketing is the ability to target marketing efforts. Companies can concentrate their marketing effort on customers that are most likely to buy. Through continually gathers, refines, and analyzes data about the customers, their buying history, prospects, past marketing efforts, demographics, data can be turned into information that supports all marketing and sales programs.

A database marketer send targeted promotions to any segment of their customer and prospect lists, measure the value of their individual customers and track promotional efforts, measure responses, purchases, and the return on investment for every dollar spent on their promotional efforts.

Data Query and Report

Effective database marketing requires extracting useful information from your marketing data. Our reporting consulting services can create a view of your dataset and categorize your data into groups and summarize them into meaningful information.

We utilize database query and pivot tables (OLAP - Online Analytical Process). A pivot table is a powerful data summarization tool in Microsoft Excel. Among other functions, it can sort, count, and total data stored in a spreadsheet and create a second table displaying the summarized data.

Data Integrity
Data Quality | Data Management

One of the key issues raised by data mining technology is data integrity. Clearly, data analysis can only be as good as the data that is being analyzed. A key implementation challenge is integrating conflicting or redundant data from different sources. For example, a bank may maintain credit cards accounts on several different databases. The addresses (or even the names) of a single cardholder may be different in each. Data cleansing processes must translate data from one system to another and select the address most recently entered.

Our data cleansing services transform and combine different data, remove inaccuracies, standardize common values, remove redundancy, parse values and cleanse corrupt data to create consistent, reliable information:

Data Cleansing
Data De-Duping | Data Standardization | Data Parsing

Data cleansing services transform and combine different data, remove inaccuracies, standardize common values, remove redundancy, parse values and cleanse corrupt data to create consistent, reliable information.

Data integration

Data integration is the process of combining data from different sources and providing the user with a unified view of the data. Data cleansing supplements this process. During the process of data integration, data from multiple sources are combined into a single data set. Redundant data entries are identified for consolidation or elimination.

Data Enrichment

Data enrichment or data enhancement adds more info from other internal or external data sources to information already used in the organization. This process increases the analytic value to the existing information.

Take the next step and contact us. It takes only a few minutes:

  1. Use our contact form to contact us about our Excel consulting and data services.
  2. Give us a short description of your need.
  3. We'll contact you within hours in most cases.

Database Marketing Implementation *

  • A book store is going to have a sale on computer books. Instead of mail a postcard to the entire customer list, it mails the postcard only to customers who have purchased computer books in the past. The result of that targeting effort will be reduced marketing costs and increased return on the investment.

  • A toy company is about to introduce a new line of Hello Kitty product. The company selects two lists; people who have purchased Hello Kitty product in the past, and people who haven't from its database. They design a special introductory offer for past Hello Kitty product buyers and send it to all of them. Then they send a special "first time buyer" offer to just part of that list of non-buyers to see if their offer works. If it produces good results, they will send the offer to the rest of the list. If not, they will either save the money or design a new offer and test again.

  • By analyzing your marketing database you determine that your best customers meet certain identifiable criteria, say married couples with children. On the mailing list sign up page on your web site, you ask people to indicate if they are married or have children, thereby identifying them as likely prospects to become good customers. Further, you rent a prospect mailing list and limit the selection to married couples with children as a way to target your prospecting efforts more accurately.

  • A sporting goods company has a web site on which people can sign up to receive special offers. At the same time, people can indicate their areas of interest - soccer, camping, tennis, etc. They can also indicate a preference for receiving offers by mail or email. At the beginning of camping season, the sporting goods company selects four different lists:

             1. customers that have purchased camping equipment or indicated an interest in camping and prefer
                 email offers
             2. customers that have purchased camping equipment and prefer offers by mail
             3. prospects that have indicated an interest in camping and a preference for email
             4. prospects that have indicated an interest in camping and a preference for mail

Four different marketing campaigns are designed, implemented, and the results are measured for effectiveness. Everyone has received offers that interest them (camping) using the delivery method (mail or email) they prefer. There is no "junk mail" in this effort, and marketing dollars have been utilized very efficiently. The chances for a profitable marketing campaign have been maximized.

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Black-Scholes Option Pricing Model

The Black-Scholes model is a mathematical model of the market for an equity, in which the equity's price is a stochastic process. Its PDE is an equation which (in the model) the price of a derivative on the equity must satisfy. The Black–Scholes formula is the result obtained by applying the Black-Scholes PDE to European put and call options. The formula was derived by Fischer Black and Myron Scholes and published in 1973. They built on earlier research by Edward O. Thorp, Paul Samuelson, and Robert C. Merton. The fundamental insight of Black and Scholes is that the option is implicitly priced if the stock is traded.
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