Using database marketing, we have altered our methods. We are no longer looking only at the products we are selling, we are looking at the customers we are seeking to serve. The goal of successful database marketing is to acquire and retain profitable customers. As we develop databases for the first time, we are able to use them to see customers as distinct individuals, rather than as a part of an amorphous mass market. We see their differences.
Some customers are very profitable and loyal.
Some customers are unprofitable and fickle. We are beginning to discover that we can increase our profits by studying these variations, and by using this newly acquired knowledge of our customer base to market differently to each discernable profit group. Airlines have led the way. Establishing frequent flyer programs, complete with unique ID numbers and databases which record each flight and accumulated miles, airlines have been able to provide super services to their best customers. Let's provide a personal example.