Do you know that nearly 90% of the leading digital marketers consider personalization one of the key contributors to a business’s success? However, there’s much more to personalization than recommending products based on a customer’s purchase history. For example, suppose you buy toys online for your nephew’s birthday and subsequently get tons of emails to purchase kids’ toys. You eventually get tired and unsubscribe from the emails. The same thing can happen to your business if you don’t resort to database marketing.
What is database marketing?
Database marketing allows you to develop personalized marketing communications, create targeted campaigns, and make your campaigns more relevant for your target audience. It’s a marketing strategy where you collect your customers’ data, analyze it properly, and create personalized recommendations for different customers. Some of the information that you may need for database marketing are as follows:
- Transaction data
- Customer names
- Customer addresses
- Customer phone numbers
- Purchasing behavior patterns
- Any support tickets sent
A digital marketing agency for ecommerce needs a CRM system to collect the data mentioned above. This software allows you to collect the data in one place and make customer interaction easier with your company.
Difference between direct marketing and database marketing
Collecting customer names and their addresses to mail flyers or postcards is traditional direct marketing. However, it’s different from database marketing. Database marketing involves targeting customers based on their personal information and developing strategies tailor-made to the types of products they may want to buy. In addition to focusing on personalized product recommendations, database marketing also involves improving how you communicate with your customers.
While email marketing may work for a few customers, SMS or social media marketing may work for others. Therefore, database marketing digs deep to personalize the marketing experience so that potential customers don’t feel disturbed by marketing efforts that fit their profiles.
What to do with database marketing?
If you plan to send emails to hundreds of clients and hope to see your sales volume increase, you should know that database marketing can help create a much more efficient marketing campaign. Here’s how you can make the most of database marketing for your business:
- Create targeted campaigns
- Use analytics to find out when you should launch a marketing campaign
- Provide discounts to new customers
- Offer loyalty programs to existing and long-term customers
- Segment customers into different groups to personalize product recommendations
- Use analytics to figure out customers’ buying patterns
According to Emilia Flores, the co-founder of UkBadCreditLoans. Database marketing aims to use customer data to develop a personalized ad experience for your target audience. What works for one may not work for another customer. If you can personalize the ad experience, you can target your audience according to the marketing campaign. This will provide a better response from potential customers and increase the chances of conversion.
While database marketing provides a range of benefits, you shouldn’t stop merely at collecting customer data. Instead, work with a marketing agency to manage the data so that you can come up with personalized ad recommendations according to your target audience’s preferences.