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For far too long, marketing has been positioned as a qualitative, right-brain discipline driven largely by creative and entrenched in emotion. This idea was raised during a conversation I had recently with an executive from a major advertising firm. The executive, by his own description, was a "big-idea" man, always searching for the next big thing for an ad campaign that would propel his clients' marketing results to new levels. Like many ad professionals, he largely dismissed database marketing because it wasn't a big-idea business. Many corporate executives also buy into this belief.

They're still committed to the idea that marketing is an emotional practice and not a rational, fact-based one. Marketing in the future will be rooted firmly in both. Fortunately for database marketers, a revolution is occurring that will make the big-idea people take notice. Though several factors are igniting this revolution, four stand out.

One is accountability: the demand from C-level executives to make marketing more accountable for its effect on an organization's bottom line. The desire for more accountability in marketing will grow, and all marketers - including database marketers - will be held accountable for their efforts. Database marketing provides the metrics that demonstrate the value of every campaign.

The second factor is customer management strategy. Companies across several industries, including consumer packaged goods and financial services, are shifting from product-centric approaches to customer-centric strategies that manage the entire customer relationship. Database marketing allows greater audience segmentation and measurement of customer value, which are two drivers of this trend.

The next factor is media fragmentation. As marketing communications become increasingly targetable, addressable and measurable, companies are relying less on mass media channels and redirecting marketing dollars to more measurable, targeted forms of media. This increases the complexity of media measurement and optimization. By enabling both measurable and targeted communications, database marketing will play an increasingly critical role within marketing programs.

The fourth factor is technology. Advancements in the way we can use data - that is, how to leverage knowledge to achieve results - are making the answer easier to know. And as that answer becomes easier to know, more marketers will demand to know it. Many marketers will be surprised by the answer because they will learn that they've been wasting time on the wrong approach. Moreover, they will find that they lack an overall framework and understanding by which they can benchmark their approach and learn from their experiences.

Though upcoming trends are important, the core issue as it relates to information-based quantitative marketing continues to be a matter of what's "knowable" versus what's "doable." That's because many marketers tend to work on what they know. Generally, the things they know today are not the things that will create the biggest impact in the marketplace.

Database Marketing, Not Management Marketers also think that they're doing "good" database marketing. Though there's a lot of talk about good database marketing and the use of data in the enterprise, the proper use of information remains a highly underutilized asset. Many marketers consider themselves decent database marketers, but they don't judge their performance against the right metrics.

The challenge is for the fact-driven, rational marketer to become more relevant to the C-level suite that signed on to the big-idea belief. Database marketers are noticeably absent at the strategic table; instead, they have a seat at the operations table. And if you look inside many database marketing departments, you'll find that most organizations have little or no expertise in analytics, marketing strategy, business intelligence and little true authority.

Mostly, database marketing is being misinterpreted as database management. Some marketers are beginning to understand the value of quantitative, information-based marketing. But in the holistic view of things, despite the advances in technology and the growth of quantitative competencies over the past several years, the potential of database marketing remains largely untapped.

As with the ad executive, there is always the tendency to jump to the next "big idea" that will get noticed. The current focus in most database marketing departments is on technology and improving operational efficiencies. The problem is that database marketing has never been "the next big thing," which makes it a less intriguing option.

Strategy Over Vision Firms that continue to believe the illusion that marketing is a wholly emotional undertaking must begin to conceptualize new quantitative, data-driven approaches. Too often, the industry is rooted in buzzwords that connote "vision" - customer-centricity, accountability, one-to-one marketing.

Marketers must stop talking about their vision and start talking about strategy. Ask yourself whether you really have a strategy to reach that next step. Do you have a framework in which to understand how you're going to implement against that strategy? Do you have metrics that are being used by the C-level suite? Is your perspective broad enough to be relevant at the strategic table?

It's going to take time before marketing becomes more balanced and database marketing takes a seat at the executive table. The revolution won't happen in any given year, but rather will evolve gradually. This is a decade-long journey. The next several years will bring great opportunities for both database marketing agencies and organizations that embrace quantitative, data-driven approaches. The basic elements to revolutionize marketing are already in place, and there exists a chance for first-mover advantage for those that possess the depth and breadth of competency on which to act.

The days when marketers used customer databases solely as resources to keep consumers’ mailboxes filled with fliers and catalogs continue to fade, according to a new Forrester Research study of 124 companies. But while marketers are getting increasingly sophisticated about using their databases to influence overall company strategies, they could stand to better target their e-mail marketing campaigns.

“The customer database is playing an increasingly strategic role in the organization,” says Elena Anderson, a senior analyst at Forrester and coauthor of the study. “Not only is it being used to blast lots of paper mail and telemarketing phone calls, but it is also being used to find-tune internal marketing” such as search engine marketing.

Anderson says the study confirms that marketers are treating their business more as a science than an art. “Marketing is starting to migrate from what traditionally has been very right-brained creative business plans to more of a left-brained quantitative analytical discipline,” she notes. “With that trend being a key driver, we see firms turning into looking into customer databases to drive insight and strategy.”

But here’s what Forrester considers the bad news: Most companies still have a lot of heavy lifting to do in sifting out their e-mail databases. They are still sending out too much stuff to too many people who are not realistic prospective customers. And Forrester found no correlation between e-mail volume and investment in research on its effectiveness and how well it ties into the rest of a company’s marketing strategy.

“All the e-mails landing in inboxes are driving consumers crazy,” Anderson says. “We need to do a better job driving targeted strategies to monitor customer engagement.”

Among the other findings:
• Direct mail volume is likely to grow 15%-25% in 2005, and companies have set hefty budget increases for e-mail and telemarketing. The average company will send out 112 million pieces this year.
• Databases drove an average of 4.6 marketing activities. Seventy-six percent of respondents said databases influenced their e-mail campaigns, and a small but growing number reported that they helped shape strategies on mass media advertising, search engines, and Web banner ads.
• Marketers are ultrabullish on the Internet and increasingly leery of traditional outlets. Asked to predict which will be the most effective marketing tools five years from now, 81% said the Internet, 77% search engines, and 69% e-mails. But only 17% mentioned print, and 21% apiece said TV and radio.
• More than 40% of respondents said their databases influence corporate strategy. Those in the travel and leisure industries (60%) were most likely to use their databases that way. Those who relied heavily on databases were twice as likely to use what they considered “aggressive” marketing strategy and tactics.
• More than three-quarters of the respondents are using the same databases to power direct mail and two-thirds of them are storing e-mail contacts in the same database.

Of the firms Forrester polled, more than half had 10 million names in their databases, and in aggregate they sent out 10.6 million pieces of direct mail, which represents 9% of the 116 billion pieces sent through the U.S. Postal Service.

Retail and financial services companies each accounted for 32% of the respondents, with the manufacturing and travel/leisure sectors accounting for 11% each, and the remaining 14% scattered in other industries.

Regardless of the industry, you can be certain that someone is out there scheming to take away your customers. Those without a strong loyalty strategy are left vulnerable to competitive tactics for gaining share of their customer's wallets. Yet many companies put off developing this important component.

A common excuse is, “We don't have the budget for all the infrastructure and start-up costs.” While this may be true, it's unfortunately based on the misguided belief that loyalty strategy equals loyalty cards and the legion of associated costs. The reality is that a structured rewards program is only one of many tactics that can be used to build customer loyalty.

Genuine loyalty creates an emotional bond that makes your company the first choice in the hearts and minds of your customers. Developing this tie requires a comprehensive understanding of customers — and what drives their behavior and forges their perceptions. The starting point is always customers and their data.

Valuable customer information can be found in several places throughout your organization, including existing customer databases, Web site interactions, product registrations, ATMs and kiosks, rebates, surveys and third-party demographic data.

An in-depth analysis of your current customers and their behavior will allow you to identify and prioritize your business needs; determine the customer behavior required to meet those needs; profile high-value and high-growth potential customers; and create behavioral motivators that will appeal to those customers.

There is no single magical tactic that will drive customer loyalty. It's typically the result of a combination of initiatives that may or may not require a structured loyalty card program. Examples of some other tactics follow.

Personal Service
This is a loyalty-building approach that's utilized across multiple industries from retail to financial services to sports franchises. It takes the form of personal shoppers, relationship managers and personal account representatives to provide individual attention to high-value and high-potential-value customers.

Benefits: Builds loyalty of high-value customers; provides competitive differentiation.
Requirements: Strong employee loyalty and buy-in. Comprehensive training is a must.
Caution: Be careful to ensure that loyalty is being built with your company, not with your customer's primary point of contact.

Needs-based Marketing
This tactic centers on providing relevant communications to your customers. It is based on the general consensus that if you speak with people about topics relevant to them, they will respond more favorably.

It's all about using customer information to place the right offer in the right hands at the right time. For instance, understanding where your customers are in their life stage can provide direction on needs, perhaps even before they realize the need. Likewise, incorporating purchase history and other indicators of preference will let you focus on promoting products and services to evoke the best response.

Benefits: Greater response to targeted offers; competitive differentiation.
Requirements: Timely access to customer data; overall understanding of key customer metrics.
Caution: Be careful not to broaden the target audience to meet specific mail or e-mail quantities. Mailing more doesn't necessarily equate to generating more revenue.

Cause-related Programs
Partnering with a charity or giving back to the communities where you do business is typically well received by customers. In fact, research has suggested that a large percentage of consumers would switch brands to support a social cause. An example of a cause-related program would be the contribution of a percentage of sales to local schools.

Benefit: Reinforces a positive brand image.
Requirements: Internal altruistic attitude; establish monitors to ensure follow-through on commitments.
Caution: Negative brand image could result if the program is perceived as solely self-serving.

Co-Marketing Partnerships
Forging alliances with non-competing businesses allow both firms the flexibility to make exclusive promotional offers and provide access to information, products or services that competitors cannot. Co-marketing partnerships also present an opportunity to acquire new customers through cross-promotional activities within your partner's customer database.

Benefits: Strengthens customer relationships; presents co-funding opportunities; competitive differentiation.
Requirement: Successful partnerships meet the needs of both companies.
Caution: Limit partnerships to a manageable quantity. Too many can dilute the overall impact on customers' perceptions and behavior.

The reality is that every single customer touch point is an opportunity to build loyalty. Recognizing this and using it to strengthen the relationship with your customers will go a long way toward building loyalty — even if you don't offer a rewards program.

Vicki James is director of strategic consulting services at NuEdge Systems, Brookfield, WI.