This paper discusses the role and importance of data analysis and data mining within the context of direct marketing.
The paper considers some of the prominent data analysis and data mining issues related to direct marketing. It has been designed to make those involved in direct marketing activities more cognizant of potential competitive advantages, and possible pitfalls, in the areas of data collection, analysis, and mining.
In order to be effective and successful, both strategically and tactically, a comprehensive data collection and analysis strategy must be incorporated into all aspects of direct marketing activities. This is illustrated through anecdotal evidence, industry sources, real‐life/real‐time examples, and a framework that can be employed by firms of any size.
The underlying value of the paper is that, beyond showing the importance of efficiently employing both existing and future data into the operational activities of direct marketing firms, it also provides guidelines as to how individual firms can establish a culture that enables the firm to use data as a means of leveraging competitive advantage resulting in increased growth and revenues.
