Database Marketing Definition
Database marketing is an engaging form of communication that seeks to capture and store a customer’s information. This information is kept to assist an organization structure and target different segments within its product or service offering.
Database marketing entails that every customer is recorded onto the marketing database. A customer’s record contains all possible information pertaining to that particular person. This includes contact information, past transaction history and any other communication the customer may have had with the company.
This information is what marketers use to segment their customers into different segment markets for their products and services. Database marketing provides in-depth statistics that the companies can us to analyze their campaigns such as the introduction of incentives or new product offering.
Definition Of Database Marketing
A database is simply the collection and centralization of data for purposes of storage and easy access whereas marketing is defined as a communication process offering interested parties something of value.
Database marketing can best be defined as a communication process targeted at collected and consolidated data for purposes of generating interest by offering products and services to this group.
Building A Customer Database
Organizations all over are involved in the collection and subsequent compiling of their customer’s information into databases. Databases are compiled for various reasons that could include; email addresses that could be used for email marketing or a customer’s transaction history for better evaluation of buying patterns.
A database’s effectiveness relies heavily on the submitted information. Compiling a database begins with the planning of what kind of information to include in a database.
Newsletters are considered to be a great way of building a customer database. A subscription based newsletter that updates the public on emerging industry trends and product information that might interest potential and existing customers. It’s through the subscription that database information is acquired.
Developing A Customer Database
A database should include existing customers and interested people. Many businesses do not include these potentials in their database and lose out on the opportunity to approach them at a later date.
A database assists in customer profiling based on certain factors such as their past transactions and gives the company insight into the different customer segments among its market.
While developing a database, typical information is that of the customer’s transaction history. Transaction history includes things like what, when and how much was bought.
The aim is to come up with a predictive schedule that portrays the customers buying behavior thus enabling a business to effectively cater for its customers.
Maintaining An Accurate Customer Database
Database marketing requires data cleaning on a regular basis to ensure the accuracy of the information. The presence of incorrect data in a database results in issues of duplicate mailing and misrepresentation.
An accurate database enhances an organization’s ability to carry out successful marketing campaigns. The message is conveyed to the intended audience hence bringing about the desired effect of product or service awareness.
Accuracy of a database involves setting strategies that could include regularly conducting audits on the database. Another measure to ensuring an accurate database is investing in an address verification program to avoid instances of inputting incorrect data.