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Getting customers to respond to you on the Web Creating premier pages for your best business customers Providing customer service information free on the Web Determining the lifetime value of your customers and using it to evaluate your marketing strategy Determining the next best product for each customer and putting it in the database for your employees to see and use Learning the retention rate for each of your customer segments and working to improve it Sending email communications to customers who have asked for them Using cookies to recognize and greet customers when they come to your Web site Using risk/revenue analysis to concentrate your marketing resources on customers whose behavior you need to modify

Dr. Stoner and coworkers at Ohio State University Cancer Center also found that ellagic acid prevented the induction of both lung and esophageal cancer induced by other classes of carcinogens. Ellagic acid has also been found to be effective in counteracting liver cancer brought on by a cancer-causing aromatic amine agent. In clinical studies conducted on women with a genetic risk of cervical cancer at the Medical University of South Carolina, ellagic acid was shown to decrease cancer risk. In cervical cancer cell studies in culture, ellagic acid induced cell death (apoptosis), which may be the way ellagic acid kills cancer cells. Similar results were found using prostate, breast, pancreas, esophageal, skin, and colon cancer cells. In other studies, ellagic acid promoted wound healing and reduced liver fibrosis. It provided protection against chromosome damage, DNA damage, and lipid peroxidation induced by radiation. These protective effects may be related to its antioxidizing activity.

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Building a huge data warehouse for the purpose of building pro table relationships with your customers Treating all customers alike Failing to set up control groups Failing to test any new idea on a small group rst Failing to use the Web as part of your database communications program

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c. Treating all customers alike d. Email e. Direct mail In the case given in this chapter, it was suggested that the increased retention was due to a. Customer communications b. Advanced software c. CRM d. More loyal customers e. Cookies on the Web What is considered to be a good average response rate for email communications a. 30 percent b. 20 percent c. 2 percent d. 1 percent e. 0.4 percent What is the most important factor in database marketing success a. Software b. A data warehouse c. The Web d. Marketing strategy e. CRM In risk/revenue analysis, the marketer concentrates most on a. Those customers in priority A and priority B b. The lifetime value of priority B customers c. The churn model d. The lifetime value model e. The data warehouse What s wrong with treating all customers alike a. It s undemocratic. b. The resources available to devote to the best customers will be too small. c. Even worthless customers deserve a break. d. It is impossible to segment customers by behavior. e. Customers would not like it.

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Customer segments Gold Control Silver Control Bronze Control Lead Control Total Number promoted 100,000 20,000 100,000 20,000 100,000 20,000 100,000 20,000 480,000 Sales rate 8.10% 7.94% 6.60% 6.41% 5.01% 4.60% 2.34% 2.40% Lift 0.16% 0.19% 0.41% 0.06% Lift in sales 160 190 410 (60) 700

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people resulted in 160 more sales than we would have gotten if we had sent them the control package. Unfortunately, this segmentation scheme is a self-ful lling prophecy. The high spenders spent a lot. The low spenders spent a little. You knew that when you set up your segments. You could not think up enough creative things to say to the Gold customers, for example, to differentiate their behavior from that of the Gold customers who got the same message that was sent to everyone else. This is bad segmentation strategy. Suppose we were to create our segments in a different way. We might do it by the age of the customer. We create special promotions for people in their teens, people in their twenties and thirties, people in their forties and fties, and senior citizens. We want to see if we can design messages that reach these segments and do better at selling to them than a generic message. Table 8-3 shows a possible result. As you can see, we have the same number of people, but they are divided into age groups. The lift from our promotions is very much more pronounced. The teen message really scored well and produced a 4025-customer lift over the control groups. We can t say the same for the work that our creative staff did for people in their forties and fties. From this you can see that the way you create your segments often determines your results. You should experiment with several segmentation schemes before you settle on the one that you will use for a long time.

(Continued)