GLOSSARY OF DIRECT MARKETING TERMS

By Arthur Middleton Hughes Affinity Appended Data People who are similar in lifestyle process whereby a customer file has Abandonment data appended to it (such as age, As in the phrase “call abandonment”. Affinity Analysis income, home value) from some This refers to people who, being A process of finding relationships external data file. See overlay. placed on hold in an incoming call, between customer purchases. People elect to hang up (“abandon”) the who buy skis buy snow tires. ASCII call. Call centers monitor closely the American Standard format for data “abandonment rate” as a measure of Affinity Matrix storage on magnetic media (tape or their inefficiency. A cross tab showing cross buying disk). patterns by customers who did or did ACD not buy Products A, B, C, and D. Attrition Model Automatic Call Distributor. A complex A model that predicts which machine used in modern call centers Affluents customers are most likely to leave. for incoming calls. It routes calls to Households with 30% or more than Usually expressed as a percentage of available agents, holds overflow calls, the cost of living plus taxes. likelihood. gives and takes messages, provides reports. A must for modern database Agent Attrition Rate marketing. The word for a telephone operator The opposite of retention rate. The in a modern inbound call center in a percentage of customers this year who Acquisition Cost company that takes a lot of customer are no longer buying next year. The cost of signing up a new service and sales calls. customer. Lifetime Value is often used Autosexing to compute the maximum allowable Analog A computer process for finding the sex acquisition cost. Regular telephone service comes and appending titles (Mr. Ms.) to a file over analog lines. Modern improved of names. Address service (often used for data lines) A computer term for the location comes over DIGITAL lines in which all Back end on a disk or in memory of a piece the sounds are converted to 1’s and As in phrase “back end analysis” refers of information. Addresses help the 0’s. For database marketing computer to the results of actions with people computer to find things rapidly, and to communications, digital is better. who have responded to your initial store them for later retrieval. offer. ANI Ad-hoc report Automatic Number Identification. A Batch mode A reporting method which permits system whereby you can learn the If you have received 10,000 replies to you to ask questions like: How many number of a person who is calling you a mailing, you can update your master women over 60 have bought more on the telephone. Can be linked to a file with these replies in one batch. than $200 from us in the last 4 database to find the person’s name This is the fastest and cheapest way months? and address. to update records. The opposite is On- Line updating.

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DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! Baud rate Bugs Cheshire Label A measure of line transmission speed. Errors that crop up in software. A type of plain paper label used in 28.8 thousand Baud is a good speed Caused by inability of programmers mailing. Requires a Cheshire machine for terminals and PC’s connected to a to predict all possible ways that the to affix to mailing material. The most marketing database. Speeds can go up code in their programs will be used to common computer label. to 56,000 or more. process data. Chip Bits Byte The thing in the center of a computer If a byte is like an atom in computer A unit of computer memory. One that makes it work. On a PC a 486 language, a bit is like an electron. A bit letter or number is a byte. A byte is chip is a fast chip. A Pentium is is either on or off. It is either a 1 or a usually composed of eight bits. faster. Faster and faster chips keep zero. Eight bits make up one byte. coming out. Chips are the size of your Call center fingernail, and hold millions of circuits Block The word for an inbound telephone shrunk by photographic methods to The smallest reported unit in the 1990 division in a company. The operators tiny size. U.S. Census. About 14 households in are called Agents. The call center uses a block. an ACD (automatic call distributor) to Churning manage the calls efficiently. The practice of customers switching Block group to another supplier based on special The smallest reported unit in the 1980 Call Tracking discount offers. Particularly used in U. S. Census. About 340 households Keeping track of what happened to the cellular telephone or credit card on average. customer calls. industries.

Bounce back CD CIF The practice of sending another A banking term for certificate of Customer Information File usually identical (or similar) catalog back deposit. Also: a compact disk, a form in banks and financial institutions. to someone who has just ordered of digitized data storage. (as in CD- A consolidation of many different something from one of your catalogs. ROM) accounts held by a household or individual, used for marketing Brand Managers Cell code purposes. Most packaged goods companies After completing RFM analysis, every organize themselves by brand. The customer is assigned a Cell Code Cleaning Names brand manager is responsible for which identifies her recency frequency A process whereby names and advertising, marketing and sales of and monetary level of buying. The addresses on a customer or prospect the product. The brand manager is cell code is often used in mailing. list are corrected (addresses typically the main obstacle to database Sometimes used interchangeably with standardized; zips corrected; spelling marketing which is customer focused the term Source Code. and punctuation corrected; duplicates rather than product focused. CFO consolidated, etc.) Chief financial officer. The man in BRC or BRE charge of budgets. Cluster Business Reply Card or Business Reply A way of dividing all households in Envelope Channel the country into about sixty different (1) An input-output device as part of a types, such as “Blue Blood Estates” Brokerage Commission mainframe computer. and “Shotguns and Pickups.” Usually The commission (usually 20%) paid by (2) A means of distributing product to called lifestyle groups. Useful for file a list owner to a broker to handle the the market. For example, dealers, retail segmentation. Clustering systems rental of a list. stores, direct marketing. are provided by Claritas, Equifax,

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! Donnelley, CACI. In Canada by Controller the marketing needs of the company. Compusearch. A device for managing the data input Once programmed, it can be run daily and output from several devices which or weekly for very little cost. Confidentiality Agreement are connected with a mainframe. An agreement which precedes any These devices can include terminals or Database Marketing contract with an outsourcing agency. disks or tape drives. Collecting It says that your secrets will not be Data on customers and using it to revealed to others. Controller provide recognition and services to Usually have a small computer inside customers, resulting in increased Compiled list them which permits them to manage customer loyalty and repeat sales. Names and addresses taken from the flow of instructions from the directories, newspapers, public computer to the units in an organized Data Enhancement records. People who have something way. They make the computer more A process whereby a customer file in common. Compiled lists are usually powerful. has data appended to it (such as the least useful or responsive for age, income, home value) from some direct marketing. Response lists are Conversion rate external data file. See overlay. better. The percentage of responders who become customers. Data entry Computation Period Also called Keypunching. Entering The number of years from now that Coop mailing names and addresses and other data you can safely project customer A mailing in which two or more offers into magnetic media such as tape. lifetime value. The period is short for -- usually from different companies products that soon become obsolete. -- are included in the same envelope, DBA and share the costs. Database Administrator. A person Continuity who controls a marketing database. Products or services bought as a series Copy The DBA should be someone from of small purchases, rather than all at The text of your direct mail piece. marketing or sales that has the budget one time. Book of The Month Club, or for the database. other products shipped on a regular CPI schedule. Cost per inquiry DDA A banking term for checking account Continuation CPO balances. A mailing to the same list following a Cost per order successful test of a portion of the list. Dealer Training A continuation becomes a “rollout” CPU A process whereby dealers are trained when the entire list is mailed. Central Processing Unit. The heart of a to handle your product. mainframe. Control Group Decile Every database promotion Cross-Selling One tenth of a mailing, usually divided should include a control group of Encouraging customers to buy by percentage of response. customers who are not exposed products from other departments or to the promotion. The success categories Decoy of the promotion is measured by A unique name added to a mailing list the difference in response of the used to spot unauthorized use of the promoted group compared to the Custom report list. control group (after subtracting the A database report designed by the cost of the promotion). marketing staff which exactly meets

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! De Dupe Direct Cost Percent tape or data file. You should look at a Identifying and consolidating duplicate The percentage of revenue that is dump of some records in our customer names usually done in a merge/purge applied to the cost of the product plus database to check accuracy. operation. overhead, fixed costs, etc. Duplicate Demographics Discount Rate The same name occurring twice or Demographic data usually refers The amount by which any future dollar more on the same file. All very large to the data which the Census amount must divided to produce the databases contain duplicates because Bureau or Canada Stats collects on net present value of the amount. The name or address spelling may vary a neighborhood such as income, formula is DR = (1 + i)n where i = slightly. Good service bureaus can education level, etc. This data can market rate of interest and n = number reduce but never totally eliminate be appended to a household record. of years. The interest rate is usually duplicates. It isn’t necessarily accurate for any doubled in the formula to account for particular household since it is the risk. Duplication Factor average for households in that block. The % of names on one list that are But it is usually the only data available. Disk Magnetic also on another list. It is a measure of Disks are attached to computers. affinity in the lists. Digital line They hold information (records) A type of telephone transmission which can be retrieved very rapidly if EBCDIC service that is much more reliable the computer knows the address of A protocol for putting data on a tape. than the normal analog line. All data the information on the disk (Direct All IBM mainframes use EBCDIC. is converted into bits before it is Access). In relational databases, the Most others use ASCII. transmitted. A regular telephone line is address of records and information called an Analog Line. within records are kept on indexes Edit check which make access to the records very A software process whereby data to Direct access rapid. be entered into a marketing database A disk is a direct access device. Tape is checked for logic before it goes into drives are not direct access because to DNIS the database. find data on them, you have to read all Dialed Number Identification. A the way through thousands of records system whereby you can learn in a Enhancement to find the one you want. With direct call center what number the incoming Appending demographic or lifestyle access, you have all data stored at callers dialed to reach you. Important data to a list. particular addresses. You can access because many call centers handle each piece of data directly. calls from many incoming numbers Event Driven Programs for many purposes, but use the same Database programs which are Direct Marketing bank of agents to take the calls. They triggered to produce output (usually Interactive have to know what number people communications) based on events: Marketing that produces a measurable were dialing so they can react properly a birthday letter, anniversary letter, response or purchase. The data is to the call. thank you letter, etc. stored on a database. Downsizing Extract Direct Response Moving a function from a mainframe A system for creating a sequential file Advertising or promotion that seeks computer to a smaller computer such from a relational marketing database. not just to provide information, but to as a Mini, a LAN or a PC. The extract can be used for preparing generate an inquiry, order or visit. reports, or for sending data to other Dump companies for their use. Printed display of the contents of a

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! Fixed field Geodemographics that they live in so that they only get Organization of a tape or data file in Census data that can be appended one letter per house in a promotion. which each group of data (such as to a household file once it has been name, address, city, zip) has a fixed geocoded. Includes such factors as ID Number location and length within the file. income, education, home type, etc. A number assigned to a record to help Derived from the neighborhood of the to relate it to other records in the FSI household. Same as Demographics. computer which have the same ID. Free Standing Insert. Usually a coupon or other promotion found in Geographic Identification a magazine or newspaper. The least Information System (GIS) Software The process whereby a customer expensive way to distribute coupons. that displays data on a computer identifies himself with the company generated map. which provides him with products or Flat file services Another name for a sequential name Gigabyte file. Contrasted with a database file A billion bytes (characters). A measure Index (not flat because of the indexes). of the size of mainframe disk storage. 1) used in relational databases to help A typical mainframe shop will have to find common data in thousands of Focus group 100 gigabytes or more. “Her database records. An index for income could A group of customers who are used over 35 gig!” help find all the customers whose income was between $25K and $35K. assembled together by an advertising Using an index you can query a file of agency in a conference room to Graphical User Interface 10 million customers and find out how discuss a particular product. Useful for (GUI) many women aged 60+ bought more learning what the public thinks of your Software that permits users to access than $200 in the last 6 months, and do product or message or company. their data by manipulating a mouse. it in 5 seconds. 2) A statistical term for relating the value of two sets of Format Hardware numbers. If one group had a response The way data (name and address) is Computers and disks, tape drives, index of 100 and another had 120, the organized on a disk or tape. There is printers, and other gear that are second group had 20% more replies no standard format. Every company plugged into computers. than the first one. The average of any has their own. group always has an index of 100. Hawthorne Effect Frequency A psychological phenomenon whereby Influentials A term for how many times a person people (customers) act differently In business-to-business, executives buys from you. when they are being studied. who have the authority to make or influence a purchase. Fulfillment Hidden Layer The process of responding to a An group of internal nodes inside of a Infrastructure customer request with literature Neural Network which it uses to build The process of maintaining a database: or product. Fulfillment is usually a model. The less known about hidden nightly backup, cleaning, merge/purge, outsourced to a fulfillment house. layers by non statisticians, the better. deduplication, update, etc. House File Geocoding The organization’s own file of active IS Information A system for assigning a census code and former customers. Systems (Also MIS) - the part of the to any name and address. Once a file company responsible for the central is geocoded, you can append census Householding data processing operations. data (income, race, etc.) to the records A process in which all people and their and assign cluster codes. accounts are grouped by the house

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! IVR expressed an interest in your product of customers owned by some other Interactive Voice Response a piece of or service). Lead tracking is very organization for an agreed upon cost equipment connected with an ACD difficult because salesmen per thousand. which permits inbound callers to a call hate to report on the status of leads. center to choose their own routing of Loss Leader the call (“Push 1 for Sales, Push 2 for Lettershop A product sold at a loss to get Service...) An independent company that handles customers to begin buying. all the details of printing and mailing Keyline letters. Loyalty Or Match Key -- a combination of Customer loyalty is measured as numbers and letters usually beginning Lifestyle Retention. A loyal customer is one with the zip code, which is used as a Lifestyle data about a neighborhood who keeps buying from you. rough household duplicate eliminator. comes from clustering. If a significant number of people in a given cluster Loyalty Programs Keypunching have taken a foreign trip, it is assumed Rewards that encourage customers The process whereby someone enters that all similar households have done to keep being customers longer, or to names and addresses and other data this. It is a lifestyle attribute. Included purchase more. from hard copy (paper forms) onto a are magazines read, TV programs computer tape or disk. It is done on a watched, etc. Mailing list typewriter-like keyboard into a small A list of customers or prospects computer. Same as Data Entry. Lifetime value used to mail catalogs or sale The contribution to overhead and announcements. It is not a marketing LAN profit made by a customer during her database because it does not provide Local Area Network. A system for total relationship with your company. for a two-way communication with linking several PCs into a single system Abbreviation: LTV. customers. with a File Server PC that keeps a central database. Some databases are Lift Mail shop located on LANs. The improvement in response from An independent company which a mailing due to modeling and specializes in preparing materials for Laser letter segmentation. Divide the response mailing. They affix labels, sort for bulk A letter produced on a Laser Printer. from a segment by the overall rates, prepare bagtags, insert in postal Very clean and neat looking. Possible response, subtract 1 and multiply by bags. to have unlimited personalization of 100. the text of the letter. Mainframe List broker The largest computers used in Lead A service which brings list owners business applications. They require A prospect who has responded is and prospective list renters (users) raised floors, special air conditioning. called a Lead. together. Mainframes are recommended for marketing databases because of their Lead List maintenance power, input-output capability and Conversion Rate The percentage of Keeping a mailing list current through speed measured in MIPS. leads which become customers. correcting and updating the addresses and other data. MAND Lead Tracking Money, Authority, Need and Desire -- The process of keeping up with what List rental the requisites of a qualified lead. has happened to a lead (prospect who The process of renting (for one time has use, or other periods) a list of names

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! Market Penetration megabytes of memory, which can be your customer database explains The percentage of buyers you have as expanded. the behavior of your customers. compared with the total households The output of a model is a series of or businesses in the area you have Merge/purge weights which can be multiplied by selected as your market. A software system used to merge customer data (income, age, length many different input tapes in differing of residence) to create a score which Market Research formats and put them into a common predicts likelihood to respond to an Statistical analysis of customer data to format for a mailing. Merge/Purge offer. draw overall conclusions as a basis for detects duplicates. action. Modem Micro A device permitting a PC or terminal Market Rate of Interest Micro-computer. Another name for a to send information over a telephone The cost of borrowing money PC. line. You have to have a modem at by your company from banks or both ends. Modems are rated in Baud other institutions. In discount rate Migration rate. computations, this amount is usually The process of moving your database doubled to account for risk. from one platform (such as an external Mouse service bureau) to another (such as A small switch on a wheel used to Mass Marketing your in-house mainframe). When you control a PC Selling to everyone through mass outsource, you should look ahead and media such as radio, TV, or a be sure that you can migrate at some MRI Mediamark newspaper, as opposed to database later date. Research, Inc. is a nationwide survey marketing which is aimed at a small organization that distributes consumer selected audience. MINI purchase behavior data. Smaller than Mainframe computers. Match code They may also need raised floors Multi-buyer A keyline. An extract of the name and and air conditioning. They are less A person who crops up on two or address used to identify a specific expensive than Mainframes, and, more independent rented lists. Multi- record. Used in de-duping. generally do not have the power or buyers usually respond better to a input-output capability to manage a direct offer than other buyers. Media large marketing database. Communications channels that Multiple Regression convey messages, such as radio, TV, MIPS A statistical technique used in magazines, direct mail. Millions of Instructions Per Second. A modeling whereby you develop measurement of the relative speed of a formula which explains the Megabyte a Mainframe computer. relationship between several variables A million bytes. Disks are rated in in explaining customer behavior. megabytes. MIS Abbreviation For Management Information Systems. NCOA Memory This term is used in many companies National Change of Address, a US The amount of information that a to refer to the data processing Postal Service system under which computer can hold in its head while staff that runs the central company about twenty service bureaus it is doing work. The more memory, mainframe computer. nationwide have exclusive use of the faster a computer can work, and the change of address forms filed the more complicated programs it can Modeling by persons or businesses who are handle. New computers today have 32 A statistical technique whereby you moving. These forms are keypunched, determine which pieces of data in and can be used by the service bureau

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! to update your tape of prospects to magnetic tape or cartridge. You cannot Penetration Ratio obtain their correct current address. A call up a record instantly from an off- Your customers as a percentage of the worthwhile service for line database. universe that defines your customer’s mailers. type of household or business. “We On-line had a penetration ratio in that zip Net names An on-line database is one in which code of 8%.” The actual names used in a mailing, all the customer records can be called after removing the duplicates and up on your screen instantly when you Personalization matches to your customer list. In some want them. On-line databases are The process of including personal cases, you can rent names on a net- kept on disk. The opposite of on-line is references in an outgoing mail piece name basis. off-line (or Batch) which usually means such as “Thank you for your order of that the database is kept on magnetic Feb. 23 for six boxes of hard candy, Neural Network tape. Mrs. Williams.” With laser letters, A type of modeling software on a personalization does not cost more PC which permits a marketer to On-Pack than non-personalized letters. determine the weights that should be Offers Communications with applied to a large number of variables customers by making an offer on the POS Point of Sale. to predict the response or purchases package that they purchase. A cash register. by a target audience. Overlayed Data Postal pre-sort Niche market A process whereby a customer file Sorting outgoing letters in a special A way of finding a special product has data appended to it (such as way to take advantage of postal that appealed to only one group, and age, income, home value) from some discounts. selling that product very profitably external data file. See Enhancement. only to that group, ignored by others. Predictive Outsourcing Model A model which predicts the Nixie The process of having various response to a promotion. A direct mail letter which has been database functions handled by returned to the sender because external service bureaus. Typically, Present the address was wrong. Also, any functions are outsourced to direct Discounted Value A financial process undelivered piece of mail. Nixies are response agencies, computer service for calculating the present value of an used to correct a list. bureaus, data entry houses, mailshops, amount of money to be received or fulfillment houses, telemarketing paid in the future. The formula is PDV Nth name companies. = V / (1 + i)n where V = future value, A software system whereby you can i = market rate of interest, n = time in pick every 3rd or 4th or 250th name Package years. out of a file to use as a valid test of The envelope or container or look of the file. To test a file of 400,000 with a your outgoing direct mail piece. Production test mailing of 40,000, you would pick A function in an advertising agency every10th name. PC Personal Computer of producing letters and other direct The versatile desktop workstation mail pieces. Also the programmers in Offer used for hundreds of applications. a service bureau who work on such What you are offering in your direct They can be used to access a direct mail pieces. mail: 10 for only $19.95. marketing database resident on a mainframe. Profile Off-line A way of describing your typical An off-line database is kept on customer. You create a profile by

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! modeling your database. The profile Raid Regression could tell you that your typical Redundant Array of Inexpensive Disk, Used in the phrase Multiple customer was a woman of 35-54 with a new technique for storing records on Regressions. It is a statistical an income of $25-$50K. PCs and Mainframes. Greatly reduces technique, part of modeling, whereby the cost of disk storage. you try to discover a mathematical Prospect formula which will explain trends in A potential customer who you have Random a set of data, and which variables targeted. Access Modern computer disks can determine response. A multiple access database records in random regression might tell you that your Prospecting fashion. The opposite is sequential best customers live in condominiums, Mailing or telemarketing to prospects access. Random access makes have no children, and have income who are not yet your customers. database marketing possible. over $75K, for example.

Psychographics Reactivation Relational A way of grouping people by wealth, A program which encourages lapsed A relational database is what is orientation, hobbies and interests. customers to start buying again. needed for database marketing. Such a database is kept on disk and consists Pull Recency of related files (name and address, The percent response to your offer by A term for how recently a person has orders) which are related to each mail or phone. bought from your company. It is well other by ID numbers and accessed by established that people who have indexes. Purge bought most recently are more likely To eliminate undesirable names from to buy from you again on your next Relationship Marketing a list. promotion than people who bought The process of building a relationship from you longer ago. with customers which results in Qualify In the customers becoming more Business-to-business, a process Record loyal, buying more, and staying as whereby respondents to an ad or a A collection of fields that describe all customers. Another word for Database mailing are determined (usually by the information on a customer. Marketing. a telephone interview) to be worth a salesman’s time and attention. In Referral Rate Respondent efficient operations, a telemarketer The percentage of new customers Someone who has answered a direct will qualify an incoming lead before that begin buying this year as a result response letter or advertisement. the name is sent to a salesman for of encouragement from last year’s action. customers. Expressed as a percentage Response rate of last year’s customers. If we had The percentage of people who Query 4,000 customers last year, and they responded to your offer. A typical A question designed to retrieve recommended new customers to us, direct mail response rate to prospects information from a database. The of whom 240 became customers, the is 2%. result can be a count, a cross tab or a referral rate would be 6%. report. Response Device Reformatting On every outgoing direct mail piece, Quintile Changing the format of a rented list to there is included a response device One fifth of a mailing, usually divided a new record format that matches a which usually shows up in the by percentage of response. “Our top desiredarrangement. “window” in the envelope to provide quintile gave us 70% of our total the name and address. The response revenue.” device is an order or donation form.

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! It is important because it usually Rollout customers into groups for varying contains the prospect number, and a After a direct mail test of a few tactics. source code that identifies the offer, thousand letters, a rollout is the package, list, segment, etc. mailing to the rest of the names on the Sequential successful lists. It may be preceded The way records are arranged on a Retention by a second test or “continuation”. tape. The opposite is random order, or The tendency to keep customers ROP Run of press, or Run of Paper. a relational database. buying. Success is measured by Advertising space purchased which retention of customers. the paper may insert wherever they Sic code see fit. A coding system designed by the Retention Budget U. S. Department of Commerce for A budget for a program to keep SAA classifying the products and services customers from leaving. System Application Architecture. An produced by companies. It is a very IBM term for a system whereby PC’s inadequate system, but it is the only Retention Rate can be connected to and used to run one around. The percentage of customers who mainframes by cooperative processing. continue to make purchases from you SKU in a second period, such as a year. If Satisfaction Survey Stock Keeping Unit: a warehouse you had 4,000 customers who bought A survey of customers designed term for the products that a company from you last year and this year 3,000 as much to learn something about produces. Each different product has of those same people also make customers for relationship building its own SKU number. purchases, your retention rate would purposes as it is to learn about good be 75%. and bad features of your servicing of Software the customers. Programs that run on computers. Return on Investment (ROI) Programs tell the computer what to do A key measure of the success of any Saturated Market in a step-bystep fashion. direct marketing activity. It is the total A situation in which everyone has the net profit from a direct marketing product, and the market is essentially Source code initiative, divided by the total cost a replacement market. For example, A series of letters or numbers affixed of the entire operation. ROI from an tires, batteries, room air conditioners, to an outgoing advertisement or initial offer is often negative. But when television. promotion that identifies the list, customer lifetime value is taken the offer, the package, and the into account, it often becomes SCF segment (as well as the media) in positive. Sectional Center Facility. The first which the promotion was made. three digits of the U. S. Zip Code. Essential to testing the success of any RFM direct marketing effort. The source Stands for Recency, Frequency, Seeds Names code must appear on the response Monetary. It is a method for Of yourself, friends, relatives, or device (or in the case of telephone segmenting or rating your customers. employees inserted in a direct mail orders, must be asked for by the The best customers are those who mailout to track delivery and quality, telemarketers). have bought from you recently, buy and to safeguard against unauthorized many times, and in large amounts. mailings. Also called “decoys”. SQL A query language used with the IBM RFP Request Segmentation software DB2 Often pronounced For Proposals; the document which is To divide outgoing direct mail into “sequal”. used to get external database service coded groups for testing or to improve bureaus to bid on maintaining your response. Also used to classify marketing database.

DESIGN IT. WRITE IT. PRINT IT. MAIL IT. PERSONALIZE IT. DEVELOP IT. AUTOMATE IT. MARKETING TECH DOES IT! SRI sequential (one after the other Tiger Stanford Research Institute. A leading whereas disk records can be in random A Census system for mapping the research institution which pioneered order. Tape is the cheapest way to entire United States by Blocks, Psychographics. store information, but the data is hard complete with roads and other to get at. Tape is used for backup and landmarks. Customers and prospects for sending information from one Statement Stuffer can be shown on a map using computer to another. Direct marketing An offer or newsletter included with geodemographic codes to represent tapes are 9 track, and 1600 or 6250 a monthly invoice or statement to a where they are. bytes per inch. They are ASCII or customer. EBCDIC. Update Storage Target Marketing To modify a database record to insert The capacity which a computer has new information into it, or to delete it. A marketing strategy aimed at a for storing names addresses and Updating is either done in batch mode particular individual or group rather other data. Storage is usually on (fast and cheap) or on-line (slow and than to mass media. magnetic disks, and is measured in costly). megabytes (for a PC) or gigabytes (for Telemarketing a mainframe). Up Selling Talking on the telephone to prospects Prompting customers to buy upgraded or customers. Inbound telemarketing products when they had intended to Stratification is usually customers or prospects Adding demographics to a name and calling your toll free number. buy something of lower value. address file. Outbound telemarketing is when you place the call to a prospect or UPS Suppression customer. Telemarketing can be done Uninterruptable Power Supply. A Using names on one tape (a customer by your in-house staff or by an system of batteries that permits a file) to suppress or drop names from external telemarketing company. mainframe to keep going even when another tape (a prospect file). the power fails. It is usually connected Terminal to a diesel generator that kicks in as Sweepstakes A device that looks like a television soon as the batteries have begun to be An offer promising a randomly drawn screen with a keyboard which, when needed. prize to all respondents, regardless of hooked up to a computer, enables whether they buy your product. Those to enter data into the computer, and WATS who do not buy, but still respond to receive data from it which you see Wide area telephone service. An “800” the sweepstakes may be valuable on the screen. The alternative to a number whereby the call is free to the names for rental or for other offers. In terminal is a PC. caller. comparison to buyers, sweepstakes respondents are generally much less Test database Weights valuable. All marketing databases should have a Numbers that are multiplied by companion test database which database values to determine model System Integrator programmers use to write and test or RFM scores. Someone who can integrate the new software before it goes on the functions that have been outsourced production database. White mail to several different companies. Mail received from a buyer or donor Third class who has not included the response Tape Magnetic Over 85% of all U. S. mail carrying device, so you cannot determine Tape is 1/2 inch wide, and holds about advertising or promotion is sent by the source code of the offer which 300,000 customer records (depending third class. Much less costly than first promoted his purchase or gift. on their size). Tape records are class. Uusually requires postal pre- sort.

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