The implementation of a CRM strategy is an ongoing process of developing and executing a series of small projects aimed at satisfying the business needs and enhancing the value proposition to customers. In this section, we focus on three essential ingredients needed to implement CRM strategies from a modeling perspective: database, technology, and metrics.
The database is the core of any CRM planning. Companies gather information to store, analyze, and make marketing decisions based on the results of data analysis. This section provides a basic overview of the categories of databases and the sources from which data can be collected.
There are several types of databases and various ways to categorize them. This can be done according to firms' main business function, information contents, underlying marketing activities, or database technology. As the focus of this book is on data modeling, we look at the following two types of databases in detail: the transaction-related database and the customer database.