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.

Data accuracy: Always keep in mind that your customers will not always provide accurate information. When your database has incomplete info, it creates a big impact on the quality of your database. You can remove data inaccuracy by replacing input fields with standardized information.

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