Editing Database marketing (section)

== Background ==
Database marketing emerged in the 1980s as a new, improved form of direct marketing.  During this period traditional "list broking" was under pressure to modernize, because it was offline and tape-based, and because lists tended to hold limited data.<ref>Stone, B (1997) Successful Direct Marketing Methods, NTC Business Books</ref>  At the same time, with new technologies enabling customer responses to be recorded, [[direct response]] marketing was in ascendancy, with the aim of opening up a two-way communication, or dialogue, with customers.

Robert D. "Bob" and Kate Kestnbaum developed new metrics for direct marketing such as [[customer lifetime value]], and applied [[financial modelling]] and [[econometrics]] to marketing strategies.<ref>Direct News-line Nov 18, 2002</ref> In 1967, they founded the consulting firm Kestnbaum & Co, that employed several notable database marketeers such as Robert Blattberg, Rick Courtheaux and [[Robert Shaw (Marketing)|Robert Shaw]].

Kestnbaum collaborated with Shaw in the 1980s on several online marketing database developments - for BT (20 million customers), BA (10 million) and Barclays (13 million).<ref>{{Cite web |last=TechOneStop |date=2017-04-15 |title=History Of CRM Software – An Exciting Journey From Ledger To SaaS |url=https://techonestop.com/history-of-crm-software |access-date=2023-03-02 |website=TechOneStop |language=en-US}}</ref> Shaw incorporated new features into the Kestnbaum approach, including [[telemarketing|telephone]] and [[Sales|field sales]] channel automation, contact strategy optimization, campaign management and co-ordination, marketing resource management, [[marketing accountability]] and marketing analytics. The designs of these systems have been widely copied subsequently and incorporated into [[Customer relationship management|CRM]] and MRM packages in the 1990s and later.<ref>Shaw, R. and Stone, M. Database Marketing. New York: John Wiley & Sons, 1988.</ref>

The earliest recorded definition of Database Marketing was in 1988 in the book of the same name (Shaw and Stone 1988 Database Marketing):{{Citation needed|date=March 2023}}

:"Database Marketing is an interactive approach to marketing, which uses individually addressable marketing media and channels (such as E mail, telephone and the sales force): to extend help to a company's target audience; to stimulate their demand; and to stay close to them by recording and keeping an electronic database memory of the customer, prospect and all commercial contacts, to help improve all future contacts and to ensure more realistic of all marketing."