Definition
A marketing database is a compendium of information on current and prospective customers that may include demographic data, psychographic data , purchase history, and a record of types and frequencies of interactions with the brand.
Data cleansing is the process of improving the quality of data by modifying its form or content, for example, by removing or correcting data values that are incorrect.
Data mining is the analytical process of finding new and potentially useful knowledge from data. The process includes the use of mathematical tools to find difficult patterns of intelligence.
Database marketing is an approach in which computer database technologies are used to design, create, and manage customer data lists containing information about each customer‘s characteristics and history of interactions with the company. The lists are used as needed for locating, selecting, targeting, servicing, and establishing relationships with customers in order to enhance the long-term value of these customers to the company. The techniques used for managing lists include:
- Database manipulation methods such as select and join
- Statistical methods for predicting each customer’s likelihood of future purchases of specific items based on his/her history of past purchases
- Measures for computing customer lifetime values on an ongoing basis[1]
References
- American Marketing Association, AMA Dictionary. (May 2015)