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a large data warehouse with costly software, aimed at determining and in uencing the behavior of individuals through one-to-one marketing. Database marketing is based on a data mar t, which costs about 10 percent of the amount required for a CRM warehouse. Database marketing is usually aimed at identifying customer segments and marketing to them, and also building one-to-one relationships with existing customers through loyaltybuilding communications. To see the difference, think of 100,000 customers on whom you have data. With database marketing, it might be possible to predict with 75 percent cer tainty that 40 percent of a cer tain segment of those customers will buy product X within the next month. But you cannot be 75 percent cer tain that Ar thur Hughes (a member of the segment) will buy the product next month or ever, for that matter. The rst conclusion comes from segment analysis using database marketing. The second conclusion would come from CRM if it could be made to work. Unfor tunately, it cannot.

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For those of you whose HRA determined that you are at a normal to high risk for cancer, cardiovascular disorders, inflammatory diseases, diabetes Type II, and/or neurological degeneration, you should introduce the various related supplements in this phase and again gradually build up to full dosage.

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We should note here that there has been a corruption in terminology. Many companies are practicing database marketing, but are calling it CRM because that sounds more modern and up to date. They don t have a data warehouse. They don t have million-dollar software. They don t really even attempt one-to-one marketing. They have just built a modest data mart and are creating marketing segments and marketing to them. They call what they are doing CRM, but it is really plain old database marketing, which works wonderfully in the right situation.

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and the number of contracts that would have to be traded to equal the dollar volatility of 10 new S&P 500 contracts at the end of 1998 For the current studies, the average daily volatility is computed by taking a 200-day moving average of the absolute value of the difference between the current close and the previous one The average daily volatility is then multiplied by the dollar value of a point, yielding the desired average daily dollar volatility The dollar value of a point can be obtained by dividing the dollar value of a tick (a market s minimum move) by the size of a tick (as a decimal number) For the new S&P 500 contract, this works out to a value of $250 per point (tick value/tick size = $25/010).

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divided them into segments, and gured out which segments are winners and which are losers That s what this book is all about doing a thorough job of creating a marketing database, and pro ling it to nd out important facts Then you use those facts to draw valuable and important conclusions Suppose Table 13-4 is a correct picture of the situation in your company Your sales force is working hard, succeeding in bringing in a lot of worthless customers, and getting bonuses for it What can you do about it You have to do your homework, determine the lifetime value of the various customer segments, and then put your ndings on the desk of top management Convince management that the company may be acquiring the wrong people as customers You will have a battle on your hands.

To obtain the number of contracts of a target market that would have to be traded to equal the dollar volatility of IO new S&P 500 contracts on 12/31/1998, the dollar volatility of the new S&P 500 is divided by the dollar volatility of the target market; the result is multiplied by 10 and rounded to the nearest positive integer All the simulations reported in this book assume that trading always involves the same amount of dollar volatility There is no compounding; trade size is not increased with growth in account equity Equity curves, therefore, reflect returns from an almost constant investment in terms of risk exposure A constant-investment model avoids the serious problems that arise when a compounded-investment approach is used in simulations with such margin-based instruments as futures.

It may get rough, but if you have done the job right and you stick to your guns, someone will recognize it Then you have to work to change the situation After all, the purpose of an enterprise is to make a pro t, not just to acquire customers We all know that, but we don t act on it In a previous book, I described the situation I found at a client that sold credit insurance for credit cards A pro ling exercise was conducted that divided the US population into seven sectors Analysis showed that only three of the seven sectors ever bought credit insurance Armed with this information, the company went to several banks (its customers) and suggested to them that they stop telemarketing to these unresponsive segments, since the sales did not justify the expense.

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