What is Database Marketing and Why is it important?
Database Marketing may sound like an intimidating term at first, but it can simply be defined as using input from current and potential customers to create a personalized experience to promote a product or service online. A database is information stored within a computer. An example of a database would be a company storing information about its employees, products, or financial documentation. Within each section of information there will be relevant information specific to each section.
Databases are important when it comes to marketing because they help companies gain insight into the interests of specific demographics. Database marketing catches the potential customer’s interest through individualized content.
Benefits of utilizing database marketing
Database marketing has many benefits, including a personalized experience for each individual potential customer. Personalized data catches the viewer’s eye over a more generalized message. When a potential customer sees information they relate to, they are more likely to give it a second glance over content that is less specific. The more specific the message is, the more time the customer will spend on the website. The more time spent on the website the more likely the customer will invest in the product or service.
Database marketing helpful resources
There are a variety of ways you can create a personalized message for your potential customers. Some examples of database marketing resources include online advertisements, telemarketing, emails, text messages, or postal mail.
For online advertising,“cookies” on websites track where each user clicks and what they end up purchasing if anything. This information can then be used to promote similar content through advertising or pop ups on the website.
Telemarketing is when customers are contacted through phone call. Phone call messages typically need to be quick and to the point due to the ease of hanging up the phone.
If a customer is signed up for a company’s email list or purchased something through their website, they may receive emails with products specifically chosen for them based on past searches and purchases. Email sign-ups are often incentivized through discounts on a customer’s next purchase for signing up.
Text messages, similar to emails, are signed up for often with an incentive such as a coupon off the customer’s first purchase. Free trials are another database marketing strategy that encourages customer loyalty through a free incentive that lets the customer test out the product or service and realize the value in it.
Postal mail is a more rare form of database marketing with the current digital age, but it has the potential to stand out against other advertisements. Mail that includes the customer’s name, a coupon, or a token of appreciation for company loyalty such as samples of a product are more likely to not be tossed to the recycling bin over a generalized message promoting a company.
How to reach your audience and build a following
Individualized experience is a key component of database marketing. In order to target your audience, you must pay attention to key demographic components such as age, gender, or race. A 40 year-old mother is going to have different interests than a single 30 year-old man.
Next, pay attention to items the customer spends the most time looking at or recent purchases made. If a customer recently purchased a navy blazer, sending an email or including a pop-up on a website with the matching pants can draw in more business.
Social media is a quick, easy way to publish a message, spread the word, and gain a following through the sharing of a post. Social media captions are typically composed of either a short phrase or a sentence or two to quickly send out a message and quickly gain a snippet of what a company values.
Webinars are another example of resources that are helpful in gaining a company following because they add a human voice through a clutter of online words. Webinars are typically live speaker events that allow potential customers to put faces to a company and potentially ask questions.
Database marketing helps draw in a loyal customer base while recruiting new ones by creating a unique experience for each individual. A customer is more likely to remain loyal to a company that caters to their wants and makes them feel heard. With the digital tracking technology available, it is easier than ever to create an individualized experience for your customer base.