DataBase Marketing, Scary or Not?
The word may seem a little bit frightening or it may seem that it is an area of marketing that needs lots of data analysis or technical skills. While it is true that to run a successful database marketing project there needs to be some data analysis or software engineering involved, the field is not as terrifying as it seems. There are thousands of service providers that will help you to run your database marketing with ease. Also, you need to keep in mind that database marketing is one of those areas that require lots of collaboration with people of different backgrounds. So to be successful in this field you may need lots of soft and people skills as well as hard and technical skills.
What is database marketing?
Database marketing is a subset of CRM or retention marketing. All your customer data should be stored in a database. This is where the term database marketing has come to existence. The type of data that gets stored in the database is some demographic data such as the customers’ age, birth date, gender, location, etc. But the most important type of data is Behavioral. These include customers’ preferences, feedback about their previous purchases, the frequency of their purchase, and other important behavioral data. The marketer then needs to use this data to connect with customers in a highly targeted and customized manner.
What are the advantages of DataBase Marketing?
We as human beings have the need to be recognized as an individual. We crave to be unique and stand out amongst the crowd. As such we love to be treated in a unique manner that is aligned with our preferences. You will engage more with a brand when they send you a happy birthday message or when they show you the products you are interested in and remember your past experiences with the brand. When brands engage with you this way, you feel happy and more content. People are exposed to around 3000 messages each day. Their brand has a limited capacity and to survive we have adopted the ability to ignore. Of the 3000 brand messages, many of them get ignored and our brain only pays attention to the messages that are relevant to us. Along with relevancy database marketing also offers the advantage of being preventive.
The biggest advantage database marketing practices offer to the marketing managers is that they can compose messages that are highly relevant to their target audience and as such, they will receive more attention from them.
One of the most well-known facts in the marketing world is that the cost of acquiring new customers is around 5 times higher than retaining old ones. An analysis of your database can help you identify the customers who are on the verge of churning and engage with them with a message to prevent them from losing contact with us.
To sum up
Database marketing is one of the new trends in marketing where marketers analyze their customers’ data and then compose relevant and personalized messages to get in touch with them.