Database marketing coming into its own

Database marketing has a robustly healthy future in front of it, with four out of five companies not using it now planning to do so, a new survey says.The survey, distributed as freestanding inserts in Strategy and The Globe and Mail...

Database marketing has a robustly healthy future in front of it, with four out of five companies not using it now planning to do so, a new survey says.

The survey, distributed as freestanding inserts in Strategy and The Globe and Mail in March and completed earlier this summer, also found two out of three companies are already using database marketing (dbm).

SDMS Response Marketing Group in Toronto commissioned the survey and it has just recently been released to the media.

The Media Shop, also in Toronto and unaffiliated with sdms or Strategy or the Globe, compiled the results.

The survey says the use of database marketing is more developed in the retail segment than in other industry sectors.

67% use DBM

The survey says, in retail, 67% of respondents use dbm compared with 56% in the ‘other’ category, which comprises such sectors as entertainment, publishing, transportation, government and distribution.

It says that of those respondents not using dbm, 100% of them in retail intend to use it, as do 92% of the respondents in manufacturing.

In the service sector, 82% of respondents planned to introduce dbm.

Although the survey found high use or planned high use for dbm in all sectors, it also discovered companies using the practice had not committed large budgets to it.

Of those respondents using dbm, 46% of them spend 10% or less of their marketing budgets on it.

The survey says one in four companies spend 50% of their marketing budgets on dbm, with service industries tending to spend a greater percentage of their budgets on dbm.

51% from service sector

A total of 336 completed questionnaires were received by sdms, the greatest number – 51% – from the service sector.

Retail supplied 12% of completed questionnaires, 11% of them came from manufacturing, and 26% fell under the ‘other’ category.

Nick King, vice-president of sdms’ Response Marketing Group, says the results of the survey will not only help his firm provide better service to its clients, but also help marketers who obtain a copy sell dbm within their own organizations.

King says sdms commissioned the survey because it was hard to find out what companies were interested in dbm, and a lot of his clients were asking questions about database marketing developments.

Information about the survey can be obtained directly from sdms. DC