While technology continues to evolve, marketers discover ways in promoting their businesses fueling the growth of many companies. One of which is called ‘Database Marketing”. This article will help you to understand what database marketing is in the simplest way as possible.
Database Marketing defined.
It is a form of Marketing that employs data of consumers or potential customers to make the necessary and appropriate promotions of the products and services. Data gathered from the costumers are carefully analyzed using statistical techniques to predict the most suitable customer in the future. After carefully analyzing the data, personalized communications, such as e-mail or phone calls, is then sent to the individuals. There are two main types of database marketing:
1) Consumer Databases – Used by companies that sell directly to individuals, often abbreviated as B2C (Business-to-Customer).
2) Business Databases – Commonly used for business-to-business transactions, (ex. manufacturers to a wholesaler). Abbreviated as B2B.
What kind of Data is needed and where does it come from?
Generally, marketers seek as much as data available about the customers and future customers as possible. These may include a variety of data such as names, addresses, history of purchases, demographics and communication histories. For B2C marketing, data is commonly acquired thru third-party sources. In developed countries, providers of such data are common. Companies may also gather data directly from prospect consumers by the use of subscription forms, credit card information, sweepstakes, on-line registrations, contests or other activities. On the other hand, B2B marketers tend to have less data compared to B2C companies because their audiences are not individuals but rather, other companies or groups of people. Usually, data of the customers will rely on intermediaries, such as salespeople, agents and dealers, and transactions may be fewer. Data for B2B however includes the business activity about the prospect clients and aren’t restricted by the same privacy laws as B2C.
Data Hygiene is VERY IMPORTANT.
With a lot of data in store, which could be terabytes of data, organizing and analyzing the data may prove a little challenging. In database marketing, data hygiene is important and does a large impact on companies. It is in fact one of the most important issue to address in database marketing. Database marketers need to constantly update the database. A large number of consumers may change their jobs, address or contact information and if not updated, data will be useless. Enhancing and updating the database is a key to companies’ increase in productivity. Data hygiene includes the following:
1. Enhancing, correcting and expanding data.
2. Adding contact information that matches a consumer
3. Appending and validating the data collected
4. Finding missing elements in the data fields
5. Identifying and Removing duplicate entries in the database
Database Marketing Services on the web.
Database marketing enables companies to harness data and use it to promote products to intended audience. While mobile computing is a growing trend, and so as social networking, collecting data have never been so easy before. Because of this, database marketing becomes more efficient in making companies productive. A lot of companies now offer professional database marketing services. It is readily available in the internet. Services include, data hygiene, telemarketing services and Email marketing. Such services help companies to grow and expand. Database marketing can be the key to your company’s success.