@Sunny27 - I also love those ideas. I think that database marketing can also lend itself to one to one communication. I know that a company that has me in their database will offer me a coupon to purchase a free $20 gift in their store on my birthday as sort of a birthday present.
This makes me feel extra special and really creates a lot of good will. When a company goes through these lengths to make me feel special I will remain loyal to them because most companies do not take advantage of this marketing opportunity to also create a bond with their customers.
In addition, when you receive an offer like this you are more likely to spend a lot more than the $20 offered. I also have seen companies offer specific coupons and promotional opportunities to their best customers like a preferred customer event or fashion show.
This is really smart because I have always heard that it costs more money to get new customers than it does to take care of the ones you already have.