The objectives have been set to migrate customers from pay as you go to pay monthly contrite, retain loyalty and promote the other services which Orange offers. Firstly the database needs to assessed to suggest improvements for better targeting for direct marketing purposes. After selecting a potentially high profitable segment, media communication and methods can be chosen in accordance with the characteristics and traits of the segment. The message must be directed and implemented toward the target group in order to increase sales and retain customers.
The database is a very important part of direct marketing. It allows marketers to know more about the wants of existing customers. This helps them tailor the market offerings more precisely to those customer needs and refine the targeting of marketing activity to ensure a more timely and accurate delivery of communications (Sargent & Douglas 2001). The unique edge of database marketing is that you know, with a 90 to per cent certainty, whether the customer really is a customer.
You know whether a prospect really is a prospect -that he or she is someone who already uses the category of product, or who has asked for information, or who has an immediate need for what we are selling (Nash 1993).
Orange currently has a database, but improvements could be made to make the database more of an efficient and effective marketing tool. The pentagon shown below can help us to decide what other information needs to be included in the database.
These fall into the more formal categories demographics, geographics, geodemographics, psychographics, and behavioural.
Occupation - by knowing if the user is say a student or a business man, all appropriate media can be directed toward them. For example the student deal Orange currently hold could be sent...