Exam 11: Database and Direct Response Marketing

To code data using RFM analysis,the frequency is coded from 1 to 5 with 5 representing the customers who have made the highest number of purchases within a specific time period and 1 representing the customers who have made the least number of purchases.

A useful metric for evaluating members in a frequency program is:

A card pack is:

The marketing database contains the transactions individuals have with a firm and follows accounting rules.

Successful cataloging today requires:

In a RFM analysis,the M represents the monetary value of the last purchase.

Two common forms of database coding are lifetime value analysis and data mining.

In terms of alternative forms of direct marketing,package insert programs (PIPs)are materials that are placed with another company's catalog or direct mail piece.

Discuss the concept of data-driven communication

Personalized communications with customers through database information builds relationships and leads to both repeat purchases and customer loyalty.

In purchasing a mailing list,a response list consists of customers who have purchased the product before and have responded to direct mail offers for the product being advertised.

When reviewing RFM codes,Alex who is coded 534 would be more valuable than Ian who is coded 232.

Using identification IDs and passwords on a Web site for customers allow for each of the following benefits,except:

A company uses lifetime value to segment their customers into five different segments.The marketing approach that should be used for the second segment,which has the second highest lifetime value,is:

The primary reason for building a database,coding the information,and data mining is to use the output to build programs that will boost sales revenues.

The number one reason individuals remain loyal to a permission marketing program once they have joined is a chance to win prizes in a contest or sweepstakes.

In RFM analysis,R refers to recency,which is the:

The most likely individuals to be enticed to join a frequency or loyalty program are:

Direct response media marketing includes the following,except:

To maintain positive attitudes toward permission marketing programs,the rewards must be offered continually and not just at the beginning of the program.