Construction and maintenance of a database are essential elements, but, like almost anything, doing it wrong can have far-reaching consequences.

At the DM Days conference, Arthur Middleton Hughes, president and solutions architect of KnowledgeBase Marketing Inc., said that there are nine deadly mistakes made with databases that will ruin chances for success.

The nine mistakes are:

• Lack of a marketing strategy. A basic strategy rule is to put yourself in the customer’s shoes.
• Focus on price instead of service. Database marketing, not discounts, will build loyalty.
• Failure to use tests and controls. Database marketing is accountable and everything can be measured.
• Poor segment strategy. Think of status levels and marketing segments.
• Failure to link the database to the Web. Your site must have information available to customers/prospects when they use the Web.
• Building in-house. Marketing databases are unlike any other IT function.
• Treating all customers alike.  For example, loyal customers are more profitable then new or disloyal customers.
• Failure to develop a retention program. Every dollar spent on retention returns more than a dollar of acquisition.
• Lack of a forceful leader. Success requires directing the activities of many internal and external units. Database marketers must be leaders.

NonProfit Times Weekly, The Nonprofit Times