Database marketing isa type of direct marketing that uses a customer database to get a target listfor direct marketing communications. This customer database contains allcustomer data consisting of name, address, email, telephone number, purchasehistory, information requests and other related data.
Database marketing isa detailed process for identifying, collecting and monitoring relevantinformation relating to the company's customers. The data comes from variousinternal and external sources such as email correspondence, promotions, salesinformation and social media.
What is the purpose behind DM?
The main purpose of database marketing is to utilize all theinformation in the database to implement useful marketing strategies that canincrease company profits.
3 levels for effective DM
Let's discuss three important stages of database marketing:
● Data Collection: From the early stages of DM, all datafrom potential customers and existing customers are collected and recorded.This process ensures that data is provided productively to benefit the company'sdealers in sales and marketing activities.
● Turn data into knowledge: This phase requires datavalidation so that data required for marketing and communication can beaccessed easily. The data is broken down into existing and potential customersto provide objective marketing messages that are appropriate for both userareas.
● Business strategy development: The business strategy isdeveloped in the last phase with the help of knowledge and information. Forexample, the communication system with customers is changed, resources areallocated, prices and other related evaluations are calculated.
The advantages of database marketing
Database marketinghas a number of advantages associated with the process. This allowsentrepreneurs and entrepreneurs to break down and focus their marketing effortsat minimal costs.
Effective databasemarketing stimulates high sales by providing information that companies canuse to identify and explore new market opportunities. The level ofcommunication with customers is also high and the level of quality chosen. Inthis way, the company can increase the chances of customer loyalty by buildinghealthy, long-term relationships with customers.
Database Marketing Techniques
Here we share with you an excellent database marketingtechnique that is essential for sales and marketing teams to successfully usetheir database to increase sales without accepting failure.
● Client lifetime value
● Communication with customers
RFM (actuality, frequency, currency analysis)
● Analysis software
● Loyalty program
● Customer segmentation
● Multi-channel marketing
Database marketing isa well-defined process for generating large amounts of data using social media,smart devices and other sources essential for businesses that analyze consumerbehavior to produce high-quality products.
This marketing strategy allows companies to handle theircustomers on a personal basis. This customer data is then used to createcreative targeted marketing campaigns. Hence, it promotes a stronger brandexperience at every step of the consumer's journey.
Database marketinghelps extract necessary user data by providing marketing assistance to providea personalized experience through different marketing channels. Save onadditional advertising costs. Therefore, this method is considered to be muchbetter than traditional direct marketing methods to better understand customerbehavior.