Many marketers subscribe to the notion that one’s current customers are also one’s best potential customers. Now more and more companies from a variety of industries are taking that rule to heart—or should we say to their databases? These days, it seems that every time we make a purchase we are asked to give our life histories. Buy something from Radio Shack, and the salesclerk will ask you for your Zip code and, if you are willing to spend the time, for much additional information, including your name, address, phone number, and e-mail address. Other companies collect the same information through warranty cards, credit card applications, or online registrations on the Internet. But then what? Why do companies want this information? For many companies, the database constitutesthe basis for all other IMC activities. Consider the following examples:
Petco. Over 62 percent of households in the United States have at least one pet, creating a gold mine of opportunities for the $26 billion pet supply industry. Historically dominated by large brands like Alpo,Kal Kan, and Purina, the majority of sales have been through supermarkets.Now specialty pet stores like PetsMart and Petco want some of this action, and they are getting it, due in part to successful database marketing. While Petco is price-competitive, the company’s marketing success can be attributed to strong customer service and direct marketing,which in turn guides its other IMC efforts.Petco was the first to introduce a customer loyalty program—PALS (“Petco Animal Lovers Save”)—which now has over 17 million card members.The information provided by members allows the specialty store to effectively personalize direct-marketing efforts and gain an understanding of its customers’ needs.This information is used to provide customers with highly targeted in-store discounts and promotional offers.Advertising plays an important role in creating awareness of Petco programs, and the company frequently advertises through monthly circular ads in Sunday newspapers.Radio and cable TV spots are also employed, as is localized public relations (each store gets involved in activities in its trade area).All these approaches consistently remind the pet food customer of the advantages of
being a PALS member.
Wrigley. How do you create a database of gum chewers? Ask Wrigley. The long-time purveyor of chewing gum recently launched its “Get your code and go” summer movie promotion for PlenTPaks of Winterfresh gum by dropping 8.8 million packs into stores bearing splash graphics for the promotion. Consumers were directed to the Internet site winterfresh to sign in (and, of course, provide information about themselves) and to enter a code found on the inside wrapper to earn points.Point totals were tracked,with 5 points automatically triggering a freeticket voucher valid at participating theaters. The promotional campaign was supported by TV ads promoting the gum’s flavor. The objectives of the movie promo were to provide Wrigley with more data on who is chewing its gum and to initiate the development of a loyalty program.
General Motors. GM,the largest automobile company in the United States, has apparently discovered yet another way to successfully market its cars.Using national TV and print to promote the “Overdrive” corporate umbrella theme, GM used information provided by more than 1 million GM cardholders who registered at gmcard.com to target direct mailers to those cardholders who indicated that they might currently be in the market for a new car or truck. The mailer offered cardholders monetary incentives for new-vehicle purchases that could total as much as $3,500 over seven years.New cardholders were also being attracted through GM’s sponsorship of country singer Kenny Chesney’s 50-stop concert tour. Those who agreed to fill out an application received a free CD featuring Chesney and four other artists and the chance to win an opportunity to meet the singer.Did it work? Within two weeks of the mailing, GM recorded four of its top 10 new-vehicle sales days in the history of the credit card.And you thought such companies just wanted mailing information!