|| To begin with, controls on banks’ operation have been loosened and some bans have been lifted since 1988. This causes banks’ dwindling profit due to fierce competition in the market. Secondly, non-traditional service and direct finance gradually replace banks’ traditional service and indirect finance respectively. Thirdly, many companies other than banks strive to gain a share of banking business. This influences banks’ survival and profit niche. With a view to acquire competitive strength and bring in expected operational performance, banks can’t rely on mass marketing popular in the past. Rather, banks must provide tailored products and services for the target customers. Consequently, database marketing and its effective application become vital.
Through literature discussion and interviews with managers with actual experience, this research probes into issues relating to database marketing. A research framework is then produced to be used as the basis for interviews. All these are done because we want to understand how the financial industry gathers information; chooses and manages database software and hardware; analyzes data; carries out marketing plans; and treats customers after the purchase.
Because of a large customer base and aggressive devotion, bank C now is the leader in the development of database marketing. So the impressive performance of bank C encourages other banks to jump on the bandwagon.
This study finds that there are keys to a successful execution of database marketing. First, CEOs must form a corporate culture focusing continuous innovation and R&D. Also, CEOs must show support for investment on everything needed in the establishment of an interactive network linking customers and enterprises. Next, economic effect plays an important in the application of marketing skills. Database marketing must be closely associated with how big a company’s database is and how often marketing personnel contacts customers. The last is the most important asset for banks- maintaining customers’ high satisfaction level and their life-long value. The effects of database marketing shouldn’t be overestimated. The combination of a professional database and a customers’ center with functions of cross-selling and after-sale service will surely create a long-term and steady revenue.
Despite many advantages, there are some drawbacks like subjective sampling and so on. It is advised that continuous researchers can pick out one topic from this study and conduct further investigation. For example, it is good to know the different results occurring to different industries that have already implemented database marketing.
Keyword: operational performance of banks, database marketing, e-bank, customers’ satisfaction level.