Developing and maintaining a database is very important

A database is more than a simple list of names and addresses. What turns a list into a database is the additional information, coupled with your ability to select names from or report on the list using any combination of data elements.

BENEFITS OF A DATABASE

By maintaining your list as a database, you can segment in many ways for targeting. Targeting improves the productivity of your offers. You can use a database to isolate the segment of your list most likely to respond to a particular offer. With a good database, you're not "mass-mailing" your offer to parts of your list that may have no interest in it (based on their characteristics). Because the number you're mailing is smaller, your response rate (number responding/number mailed) - one measure of productivity - should be higher. (And, of course, you'll save on printing and postage costs.)

Here are two simple examples of targeting using database information:
1. You're the owner of a neighborhood General Store. For each customer, you keep a record (with dates) of all the services you've provided to that customer. You're planning a special pre-summer promotion on permanent waves for the month of May.

Instead of mailing an announcement of the sale to your entire customer list (many of whom don't have their hair permed), you select only those customers who had a permanent at least three months ago. In this way, you're targeting those customers who are most likely to take advantage of your upcoming sale.

2. You're the dinner chairperson of a local fund-raising organization. Your mailing list is made up of a wide range of contributors, from those who've donated only a few dollars to those who give annual gifts of thousands of dollars. For each contributor, you maintain a record of all past donations and functions he/she has attended, in addition to basic mailing information. This year, you're asking for donations of $100 a plate for the annual dinner dance. To get the best response to your invitation, you first target those contributors who were at last year's dinner dance. Then you target those who weren't at the dance, but who donated more than $100 in the past year.

Depending on the response you expect from these first two groups, you may next want to target those names on your list that didn't attend the last dance, but contributed $50 in the last year. You may even want to have a phone follow-up to the first two groups but use the mailing only for the third group.

Importance of Database Hosting and Automation

In order to accomplish automation of your sales and service

Process, a database is generally needed so database hosting is

Something to be considered when selecting a web host for your

Internet business.

A database is nothing more than a collection of related

information or data that is stored electronically in a computer

for easy access. There are different types of database programs

that can be used to integrate various computer applications and

to create a central database that improves the efficiency and

effectiveness of business operations and business management.

Some database programs are turn-key applications that you simply

install and use, but for the purpose of automation, database

options generally have to be customized. Since automated internet

businesses usually integrate their database solutions with their

websites to automate web-based business functions, database

hosting becomes necessary.

When selecting a database hosting company, it is most important

that you choose one that has technology and software available

that meets your storage needs as well as your integration needs

as they relate to automating your business processes.

Before you can effectively evaluate and select a database hosting

option, you have to choose a database solution that will

integrate with your existing business systems, or revamp your

entire system to ensure compatibility and the ability to

integrate and automate business functions effectively.

Some of the widely used database programming languages that

provide automation capability include Oracle and SQL, though

there are many more. The database host that you select should

have the capability of supporting a database and automation

functions for the programming languages that are used by your

company's computer applications.

Since automation and database programming is pretty specialized

and highly technical in nature, it is wise to seek consulting

services from a database programming professional or an

automation specialist.