Authors: Sinclair, Bob; Harrower, Jim

Source: Marketing Intelligence & Planning, Volume 12, Number 6, 1994 , pp. 15-17(3)

Publisher: Emerald Group Publishing Limited

Abstract:

Examines the workings of a new and highly flexible relational databasewhich is allowing The Automobile Association to generate more than£1 million of extra revenue a year. The additional money has come fromreviewing the communication process surrounding membership renewals.Further benefits come from more efficient telemarketing, targetedmailings and cross-selling. The "Driver" mainframe system handlessubscription and financial data. A subsidiary marketing database islinked to Driver, and updated nightly so the two are kept in step.Information from the marketing database can be segmented, allowing theAA quickly to build a picture of the main factors which affect itsability to retain customers. Strategies are then developed which enablethe AA to move members from a group which is unlikely to be retainedinto a group which is more likely to be retained.

Keywords: The Automobile Association; Customer Service; Database Marketing; Direct Marketing; Market Segmentation; Relational Databases; Target Marketing; Telemarketing; Strategy; Subscriptions

Document Type: Research article

DOI: http://dx.doi.org/10.1108/02634509410064178

Publication date: 1994-06-01

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• Incorporating Journal of Marketing Practice: Applied Marketing Science

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