Database marketing, or otherwise known as customer relationship management, isn’t a new concept in the marketing world. Big, billion-dollar businesses have been using it for years to cater to the needs of their current as well as potential customers. It refers to the collection of all the customers’ — existing, past, and potential — data to better understand their needs and provide them with personalized services to address those needs. Having a rich, accurate database of your customers can help your business in plenty of ways, including increased sales leads.
Here are a few ways database marketing helps businesses, as per Eric Dalius-
Personalization through customer segmentation
One of the goals of database marketing is to offer relevant and personalized information to customers. In order to achieve that, the database needs to be grouped according to customer segments that have a specific purpose or shared interest. For example, segments of new customers and potential customers (sales leads). This enables you to pitch relevant content to a specific group of customers that satisfies their needs without being spammy. With personalized information to customers comes an emotional connection that makes customers choose you over your competitors.
Increased revenue through trust
People buy from businesses they have previously shopped, or they trust. And database marketing has a lot to do with building brand trust, as it offers a direct line of communication to your customers. According to a report by Facebook, 53% of the people said that they are more likely to shop from a business that is easily accessible, either through messages or another mode of communication.Eric Daliussays that by making your business easily accessible and building a database of consumers who like one-on-one, personalized conversation, you can generate more sales leads databases, which means increased revenue.
A functional marketing database is one that is arranged according to segments, which include name, gender, age, and location. A good marketing strategy only works best when it is combined with this database. For instance, sending a promotional message to the wrong customers is only a waste of time and effort. However, sending the same message to the right audience can make a world of difference, helping you generate more sales leads. So,Eric Daliussays that database marketing also helps create relevant communication with your target customers.
Building brand authority and affinity
When you start sharing useful and relevant content with the right audience, you will be seen as a trusted brand. As a result, people will more likely choose you over others when they need a service or product that you provide. This also promotes brand affinity.
Eric Dalius’s Final Note
Database marketing, if combined with a powerful marketing strategy, can boost your business significantly, helping you generate more sales leads and turn those leads into customers. However, the key is to get accurate data from your customers quickly and affordably. Often, businesses turn to companies that provide database solutions for their database marketing.