The BookBinders Book Club: Basic Customer Analysis

DATABASE MARKETING

Direct Marketing $($DM$)$ is among the fastest growing channels of marketing. Reports

estimate that more than half of the adult population, or $52\mathrm{.}5\%,$ ordered merchandise by

phone or mail in ${1994}^1.$ Sales volume estimates for $1991/92$ range from $$200$ billion in

mail order sales to $$275$ billion in telephone sales. ${?}^2$ Advertising expenditure on direct

mail alone have risen by nearly $150\%$ over a decade from $$11\mathrm{.}79$ billion in $1983(15\mathrm{.}6\%$

of the total advertising cost$)$ to $$27\mathrm{.}43$ billion in $1993(19\mathrm{.}9\%$ of the total$).{?}^3$ Expectations

are that sales through DM will grow at a rate of $10\%$ a year, versus only $6\%$ for all other

types of retail sales. ${?}^4$