DATABASE MARKETING 439improved targeting. The latter means that individuals may be reached with a relevant message
improving response and reducing irritation levels. Repeat business and new business are the
key factors to company growth. The former will need communications with the current loyal
customers. Those heavy users are often small in number and thus only accessible through
direct marketing targeting. Strategic use of the database and accurate segmentation based on
the registered consumer profiles will be crucial for these goals. New business success depends
on the ability to identify potential customers with the correct profile as good prospects for the
kind of products or services the company has to offer. Learning from the current customers
and keeping all kinds of useful information about these customers in a database will make it
easier to develop a good list of prospects.
As the marketing database is a crucial instrument of direct marketing communications, it
is important that it is correctly managed. Most of the data will expire quickly, and frequent
updates are required to prevent the database from losing its value. There are five potential
pitfalls for a marketing database:
Incompleteness. Some data are not collected for all records in the database.
Data expiration. Some data expire quickly, for instance function (job title) and home address.
Unreliability. Some data might be false because the source is not trustworthy.
Inconsistency. Some data are not changed automatically.
Duplications. Two or more identical records may be stored due to different spellings,
resulting in two or more of the same mailings.Nursery brand Mamas & Papas offers a range of high-quality prams, pushchairs, nursery furniture, clothes and toys
through its website and over 60 stores across the UK.
Because of the limited purchasing period (from early pregnancy to the toddler years of the child), the opportunity
for customer engagement is time-limited. The company wanted to create relationships that are more fruitful with its
customers and generate more value from its customer life cycle. Together with a specialised agency, Mamas & Papas
has been able to analyse its customer data and map the ideal purchasing journey by identifying key customer touch-
points. It has built an accurate picture of every customer, understanding their purchasing behaviour and segment.
Well-targeted marketing communications allow the brand to engage on a consistent basis with parents and grand-
parents: namely, e-mail marketing campaigns based on different three-month periods and targeting special offers at
specific groups.
As a result, the value derived from its customer database increased significantly. Customers opted into marketing
communications are worth 50% more than those who are not opted in. Knowledge of the due date of the child allows
even more relevant and accurate communications. Mamas & Papas has found that these customers are worth
130% more in terms of spend than non-opted-in customers and transact twice as many times. Repeat customers
online have also increased by 27% year on year.
Mamas & Papas also mapped the ideal customer purchasing journey for expectant and new parents. It can tailor
communications to that journey, enhancing the customer experience by pre-empting their needs and deploying reactive
communications whenever a customer deviates from that path in order to extend and enhance the value of each
customer. This was just the first phase of a longer process in extending the relationship with customers. It is based on
more cross-channel data from in-store and mobile activity to build a consistent view of individual customers, to create
more effective customer segmentation and to deliver more relevant communications and a better customer experience.^52business insight
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