What is database marketing?
Database marketing is an aspect of direct marketing. It includes gathering customer information such as names, addresses, email addresses, contact information, purchase histories and so on. All the information gathered is then evaluated and used in generating a customized customer experience for each customer, or attracting potential customers. It is often used by some of the most successful Internet marketers. According to Marketing-Schools.org, the entire objective of database marketing is to ensure that the marketing messages are geared towards the most responsive groups. It is undeniable that data analysis is at the core of all modern marketing approaches.
Reasons why database marketing matters to you
Increase the efficiency of your tasks and activities
For instance, you have collected an incredible amount of data about your customer base, but have no way to manage or organize it. By setting up a database, you are able to manage large amounts of vital information and pull lists of specifics, such as tracking email addresses, phone numbers, previous purchases, FAQ, population data and more.
Create targeted promotions
You can deliver targeted deals and offers to the most potential customers by using the details in your database. For example, if you are an online cosmetic seller and you’re having a sale on lipstick, you can send an email to customers who have specifically purchased lipstick from you previously, and not to everyone who has ever purchased from you. Targeted advertising is a far better use of money and time.
Predict the behavior and actions of your customers better
Database marketing can help you evaluate the buying patterns and past actions of your customers so you are able to make better marketing decisions. For instance, you can identify sales patterns depend on what they’ve purchased previously and estimate which customers are likely to purchase in the future and which products they might be interested in.
Track your marketing campaign success
One of the most vital elements of any advertising campaign is measuring its success. Is email a better strategy for your business, or you have better respond from your customers to campaigns on social media? You can collect statistics which matter and evaluate results which can be used well, such as a campaign with elements of both email and social media focused on two unrelated prospect categories.