Database Marketing Survey
As seen in the DMA 2001 Statistical Fact Book
- Only one-half of the companies surveyed agreed that they utilize the customer database for purposes of lifetime value analysis, customer tracking and trending.
- One reason why only one-half of the companies surveyed conduct strategic research such as lifetime values analyses may be that only 44% agreed that they have the necessary software/tools for conducting such strategic analyses.
- Only one-third of the companies surveyed agreed that it is easy to access the customer information on their customer database for purposes of analysis.
- Surprisingly, over 70% of the companies surveyed indicated they do not have the necessary resources needed for performing analysis techniques such as response modeling.
- Given that testing is the foundation upon which a direct marketer grows their business, it was alarming that only one-half of the companies surveyed agreed that they always test promotional changes prior to roll-out.
- Only one-third of companies surveyed agreed that they create frozen files — a sample representing the customer’s characteristics at time of promotion — for analysis purposes. It is believed that this is mostly due to a lack of understanding of the importance of such samples in conducting proper response or segmentation analyses.
- Only about 65% of the companies surveyed agreed that they perform post analyses — an in-depth analysis of a marketing campaign — after each and every promotion. This means that approximately one-third of direct marketers do not dissect a campaign to determine what worked and did not work.
- One reason why one-third of the companies surveyed do not perform post analyses after each and every promotion may be that less than 50% reported that they have the proper tools required to perform such analyses.
- 42% of the companies surveyed have their customer file/database maintained by an outside vendor.
- Approximately 52% of the companies surveyed purchase demographic data from outside vendors and approximately 35% collect their own demographic data.
- Approximately 60% of the companies surveyed said that their company maintains a relational database as opposed to a flat file format.
- Only 75% of the companies surveyed verifies the addresses on their customer file/database (e.g., NCOA processing) more than once per year.
- Approximately 21% of the companies surveyed have no disaster recovery plan for their customer database.
- Only 44% of respondents feel their company is aligned with the direct marketing industry through it’s affiliation with the Direct Marketing Association and other direct marketing associations.
- When respondents were asked to rate their satisfaction with the direct marketing industry regarding their career and career opportunities on a scale of 1 to 10, 1 being extremely unhappy and 10 being extremely happy, the average calculated was 6.4.
- When asked to select the three descriptive phrases from a list of 18 that best describes how they view the direct marketing industry in general, among the top ranking responses were: constantly evolving and improving; marketing decisions are driven by testing results; intensely competitive; and, maximizes the use of customer information.
- When asked to select the three descriptive phrases from a list of 14 that best describes how they view their company in relation to the direct marketing industry, among the top ranking responses were: does not leverage customer information to it’s fullest; constantly evolving and improving; and, inadequate methods to target customer acquisitions.