Database Marketing: Definition, Importance, Benefits & Challenges
Database Marketing: Definition, Importance, Benefits & Challenges
Database marketing is the best
practice of supporting and handling customer data to send more personalized,
and effective marketing messages relevant to both existing and potential
customers. The term database marketing is usually applied to marketing programs
that target acquiring new customers. The bulk of data available on already
existing customers can increase the chances of retaining them. This becomes
more valuable in the domain of customer marketing.
Importance of Database Marketing
Nowadays, marketers gain quick access
to more customer data in comparison to before. This becomes a major reason why
do you need database marketing to carry out your business activities in a much
effective way. If you are having a sea of data, you can create more relevant
marketing messages that better oscillate with both current and potential
customers.
Benefits of Database
Marketing
Today, consumers like to get a much
more personalized experience with your brand. Now if marketers have to satisfy
this point, they must have a unified view of every single customer across every
association. This is how they can better understand the customer’s journey and
engage them at their business platform in a meaningful way.
Database marketing strategies when
ideally implemented in the customer databases can help you:
● You can recognize the
customer groups and categorize them into potential and loyal customers.
● You can create described
customer segments depending upon the demographic data, customer behaviour, and
personal interests.
● You can send highly
personalized messages to both current and expected customers.
● You can identify the best
channel and right time to engage more customers.
● You can optimize your
marketing efficiency by saving your time and money via campaigns to avoid those
customers who are unlikely to respond to your business stuff.
● Also, you can create
effective loyalty programs to offer more fruitful incentives for repeat
purchases.
● You can improve customer
service by showing a 360-degree view of customer’s interactions with your
staff.
Challenges of Database
Marketing
Database marketing offers some
challenges along with the benefits at your door:
Data decay: Anytime a customer changes jobs or moves to a new address
amend their name or email address then your database should be updated on time
else it will cause data decay that will be of no use.
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