Considering the hype around modern and innovative marketing techniques, it is important to not overlook some of the primary building blocks of effective marketing. Database marketing is a type of direct marketing that utilizes personalized engagement to promote services and goods to prospective customers. Customer data is accumulated, stored in, and accessed from a central database.
Here are the reasons database marketing matters
Streamline your information and business activities.
Let’s assume a situation where you have accumulated a great volume of data concerning your customer base, however you have no method to manage or organize it. Setting up database marketing strategies will enable you to arrange huge amounts of essential data and compile lists of specifics, including demographic data, inquiries, previous purchases, email addresses, and so on. Need to identify the number of females, ages 25 – 45, that purchased a cosmetic kit from you in the past 6 months? Database marketing will help you get the information you need with ease!
Send targeted campaigns
You can create and send targeted sales and promotions to your most promising leads or customers when you take advantage of the data in your database. For instance, if you own a large online retail store and you’re having a sale on laptops, all you have to do is send emails to customers who have specifically bought laptops or computers from you in the past, rather than sending to every single person who has ever purchased from your store. Targeted campaigns are a much better utilization of resources and time.
Better predict the actions and behavior of your customers
With the use of database marketing, you can better evaluate the past behavior and buying patterns of your customers, allowing you to make smarter marketing decisions. For instance, you can identify sales patterns according to what they purchased in the past and determine which customers are most likely going to purchase in the future and the products they would probably be interested in as well.
Monitor the success of your marketing campaigns
One of the most crucial components of any marketing promotion is monitoring its success. Does email seem like a better avenue for your business or are your customers responding more to social media promotions? You can accumulate metrics that are important and gauge results that can be useful to you, like a campaign that features both social media and email elements targeted at two separate qualified prospect categories.
As we have established above, the use of this better streamlined approach will help you to save on resources and costs. By creating targeted messages for customers who have patronized you in the past, you are able to concentrate on individuals who are more likely going to patronize you again, as opposed to just throwing a wide net with expectations of higher sales.
Are you aware that you can rent or buy prospect lists? Well, now you know you can! For businesses that are just getting started and need assistance with this form of marketing, they have the option to purchase email prospect lists to help them with a specific product launch or campaign.
Factors that promote a successful database marketing
You can make your marketing strategies both more affordable and more profitable if you follow a data-driven approach. There are several variables that will determine your ability to effectively use your database. A successful database marketing campaign is dependent on the requirements listed below:
- How easily you can access the customer data. You will not be able to put your customer data to use if you cannot access it. However, this is something Customer Data Platform can help with.
- Your database’s quality (inaccurate, outdated data will be very ineffective no matter how meticulously you have segmented it). In this section, the Single Customer View process comes to play, as it combines, duplicates, and cleans multiple streams of data into a single, dependable record for each customer.
- Analyzing and automating your campaigns. In this regard, you must be able to take insights and convert them into action by using multi-channel campaign management features. This will help you in achieving the most from your database marketing.
In all, database marketing is indeed a well-rounded approach, as you would also agree by now. In order to achieve success with it, you must continually accumulate and evaluate information concerning your customers, particularly their demographic data, behavior, and purchase history. Your marketing campaigns will be more successful when you have more useful customer data.
In as much as database marketing offers impressive ROI, it’s however not the only approach you can use. By using a cost-effective, smart combination of outbound marketing (cold calling, trade shows) and inbound marketing, you will be able to see incredible results from your marketing efforts. It has a good history of success, which is why you shouldn’t hesitate to add it into your existing business marketing strategy.