WITH SEVERAL DATABASE marketing techniques in the market, entrepreneurs may find it a daunting task to settle on the best method.  The following are some of the most common techniques applied in the field.

Customer Lifetime Value (LTV)

The LTV can be established in all industries, business-to-consumer (B2C) and business-to-business (B2B).  It is the net present value of the cash flows attributed to the business relationship with a customer. The results acquired from the calculation of LTV are used in directing the marketing strategy.  In the past, limited people knew how to calculate this data or apply it, but at the moment, it is widely used by many businesses.

Recency, Frequency and Monetary (RFM) Analysis

This is a popular method applied in determining clients that have high chances of responding to promotions. This method has been in prevalence for more than five decades, but there are still many entrepreneurs with no knowledge and experience of its correct application.  It is a flexible tool that plays a major role in making database marketing successful.

Customer Communication

Individualized client communication can be acquired from data saved in the database of the business.  With the help of tests and controls, the data can be used to enhance customer loyalty, retention referrals, up sales, and cross sales.  These principles are effective and they function well when established correctly.

Appended Data

Attach additional data to addresses and names of customers such as income, age, home ownership, home value, length of residence, presence of children, and other personal information regarding different households.  This information plays a great role in creation of guide-strategy as well as customer segments tailored to suit the needs if the specific clients.  Strong customer communication is also made in this way.

Predictive Models

With the help of behavioral and demographic data, you can design models that can be used to foretell accurately the clients that are likely to break loyalty and the ones who will not probably respond the new initiatives.  A blend of modeling and customer communications is an extremely powerful technique that can enhance the number of positive responses.

Relational Database

Storing data of clients using this method makes it possible to store massive amounts of information of clients and prospects and retrieve it conveniently at any time you want, using variety of methods. This data is especially important for use in marketing.  Marketing requires having a good understanding of how to utilize the data since it plays a great role in the growth of businesses.

Caller Identification

The caller ID is a device originally used as routing device.  The ID is attached to the marketing database; hence, the recipient of the caller is capable of identifying and viewing the records of the caller on the screen even before taking the call. This allows the customer service rep to talk to the customer on the line as if they know each other, thereby making it possible for them to establish a close rapport.


Websites are an important marketing tool that has revolutionized database marketing.  Contemporary sites with cookies can conduct a wide range of operations; almost similar to those that can be done by a live operator.  Although the websites are not excellent selling tools, they are excellent research tools that allow customer bonding.