Beware, the 9 Deadly Mistakes of Database Marketing

Mistake #4: Poor segmentation strategy. Divide your marketing database into segments, such as business customers, affluent/retired, young singles, families with kids, low-rate shoppers and check cashers, Hughes said. Break these out accordingly into gold, silver and bronze status levels.

Hughes pointed to a retailer who created nine customer segments: loyalists, buy the best, buy a lot, enjoy shopping, sale items only, quick shoppers, low-cost items only, necessities and once-a-year shoppers. “This is brilliant,” he commented. “This is where you want to go.”