07 Sep Why You Need To Start Doing Database Marketing Today
Even the most popular companies today still do a fair amount of marketing to keep up their sales numbers. Many new and traditional forms of marketing serve this purpose. Still, as marketing trends change and more contemporary techniques and regulations are developed, it’s good to have a failsafe method of reaching customers in your marketing arsenal.
Data capture allows businesses to collect customer data like contact information, addresses, and other relevant statistics. They’re a precious resource, and companies with access to such data should prioritize their safety. Companies can also put such data to good use in their marketing efforts. Today, we’ll be looking at one of the best ways to use your contacts list to grow sales.
What is database marketing?
As the name suggests, database marketing is a marketing technique that uses customer information like their names, purchase history, communications history, and other pertinent information to create a custom marketing experience for each customer.
Traditionally, businesses would use this information for traditional direct marketing approaches, such as sending brochures and postcards. A few companies still use this technique as it works for them, but your business can take its marketing reach even further thanks to advanced data technology.
Why is database marketing right for you?
There are many reasons why adopting database marketing services into your business is beneficial. Here are a few reasons to consider this even as a B2B business.
Makes your marketing more targeted
Database marketing allows you to hone your customer segments into distinct categories. Since you have accurate and clean data records for each customer, you can segment them into demographics or clusters for optimized targeting.
Improves customer loyalty
First-hand information on your customers gives you a direct view of their history and communication with your business. You can identify those who have stuck with your business for the longest time and offer rewards and other treatments, such as loyalty programs, to show appreciation. These customers remain loyal to the brand, guaranteeing sales for a long time.
Data ownership
You’ll have complete control of their data since you’re storing your customers’ information on your own servers. This means there’s a lower chance of losing your customers’ information than if they were stored somewhere you have no control over, such as social media platforms.
What are the challenges?
Database marketing can be incredibly beneficial to your business, as we’ve explored above, but there are also some challenges to look out for. Here are a few shortfalls of database marketing services you should avoid.
Disparate data
Your business will likely collect customer information from many sources, and sometimes there can be inconsistencies from the differing sources. These sources may collect different data points, so you have disparate data on your consumers. This can make it challenging to have a cohesive data set and render the entire dataset useless in some cases.
Data decay
Customer information is constantly changing as people change their contact information quite often. Their situations and places in life also change often. An example is a customer who was a student when you collected their information, graduating from school, and going into the workforce. Hence, finding ways to keep collecting new data on your customers is crucial.
Irregular communications
Data is a goldmine you should harness immediately after it’s collected. Businesses often fail to act fast and build a rapport with customers they have information on. This could be for many reasons, such as waiting to hit a specific number of customers first. However, doing this could mean risking the attention of customers you already have on file. The key is to act fast and establish some form of communication immediately after capturing their data.
Tips and tricks to succeed
Pick a specific customer persona
Unplanned data capture may result in an extensive database, but, ultimately, you’re wasting time and resources if you’re not collecting information from people who fit your buyer persona. Establishing the main features of your buyer persona, such as their interests, gender, age, and more, helps you know precisely whose data to include in your database. Only customers who fit this description should have their data collected and stored in your system.
Use appropriate tools
There are many tools available to aid your database marketing efforts. These tools do everything, from organizing data into silos to filtering them according to your specifications. While shopping for the right tool for your business, research as much as possible to find one that best suits your needs. Another tip to remember is to get a tool your employees can use or be easily trained to use, so it’s actually put to good use.
Respect your customer’s information
Customers often leave a detailed digital footprint online. However, not all of this information should be collected and used for marketing. It’s important to comply with privacy laws and other General Data Protection Regulations (GDPR) governing customer data use. It’s also essential to keep the information collected on customers confidential and safe. Employ the best security systems for your server and databases to avoid getting hacked and having your customer’s information stolen.
Align your teams
An effective database marketing strategy requires a team effort. It may be tempting to think the marketing team should be in charge of it all, but it’s crucial to include other teams for a truly personalized experience. Your customers will appreciate it. Other vital departments that contribute to a meaningful customer experience include the customer service and support teams and the sales team. Since these departments usually have contact with customers, they can also provide valuable insights into customer behavior.
Measure results
Measure the results of your database marketing often, and you’ll unlock valuable insights that can make it an even more successful marketing strategy. Everything from customer feedback to click-through rates and sales can be measured and used to make informed decisions in future campaigns.
Decide what metrics you’ll want to measure and align them with your goals for the campaign and what performance indicators will be used to measure progress. Use the findings from these analyses to refine and create better marketing campaigns. Doing this will ensure you consistently deliver better and more personalized marketing content to customers.
Our unique Partners for Life Program focuses on creating lasting bonds with customers. We make communicating with clients easier, building deeper relationships with key partners and boosting engagement. This technology allows for deeper data capture of customer information and automation of processes, such as communication, program monitoring, and tracking.
With regular, scheduled interactions, your business will remain top of mind with consumers, guaranteeing repeat purchases. Contact us today to get started integrating this program into your business.