Elk Grove Village, IL-based Collections Etc. plans to develop a customer database to quit the mass-market mailing approach and instead target catalog and Web offers based on market segments.

Collections Etc. has retained Harte-Hanks Inc. to build a database to boost its customer retention and upselling efforts. The database will be designed to develop applications more sophisticated than recency, frequency and monetary customer analysis to develop one-to-one dialogues with customers and prospects.

Founded in 1997, Collections Etc. markets gifts, housewares and garden accessories for $15 or less. The terms between Collections and Harte-Hanks were not disclosed.