Marketing Database: Benefits & Examples of Implementing an Effective

Shipslib.com – Data is certainly a very important asset for every company or business, especially in the digital era that utilizes sophistication of technology as it is today. 

This is why database marketing is one of the marketing strategies that you should consider and implement. Because every company must have customer data (customer data). 

Well, you can use this data to get to know your target market better. So that the process of marketing products and increasing brand awareness to lead nurturing will be much easier, as well as increasing the potential for converting leads into potential customers and increasing sales and revenue. 

Through the following article, let’s look at a full review of database marketing, its benefits, examples, and its application in order to attract more target audiences.

What is Database Marketing?

Launching from HubSpot, database marketing is a systematic approach to the process of collecting, consolidating, and processing large amounts of customer data (big data). 

The goal is to understand customer needs and provide solutions through personalized communications. Several types of data that are important for implementing this strategy include customer names, telephone numbers, addresses, and purchase history. 

Later, the company’s database will collect and store potential customer data. 

Then the data will be processed to be used according to the purpose and niche of the business. In addition, information about customer data is also useful for creating a more personalized customer experience.

When you personalize the data, of course, it will be easier for you to process the data to provide nurturing and other offers to the target audience. 

That’s not all. You can also use this personalization of customer data to establish good relationships and more personal interactions with customers.

As a result, the opportunity to retain customers while increasing customer loyalty and brand loyalty will be wide open.

On the other hand, database marketing itself is part of direct marketing. This is because you have to collect information directly by contacting customers, either through email marketing, social media, or through customer service.

Benefits of Database Marketing

The long-term benefit of implementing database marketing is to support business development and growth. Both organic and inorganic growth.

However, in the short term, some of the benefits that you will get from implementing this marketing strategy include: 

Facilitate Direct and More Personal Communication with Customers

There are various types of marketing strategies that you can apply to establish interaction and communication with customers. An example is digital marketing campaigns such as social media marketing.

However, the message you convey through social media is general so it is less personal to customers. Well, having complete information about customers from the company’s database, will certainly make it easier for you to personalize messages.

Thus, customers will feel more valued and special, which makes communication feel more personal. Thus, it can indirectly foster customer trust in the brand (brand authority). 

Identifying Customer Personas Made Easier 

All businesses want their products to target the right target market and customers, right? To make it happen, then you must identify the customer persona or customer persona. Well, it will be easier for you to create a customer persona if you have customer data.

For example, the data you collect from sentiment analysis, which can determine customer attitudes and behavior trends when buying goods. Therefore, database marketing is very important to help you determine the persona of each customer. 

It’s Easier to Segment Customers 

Every business certainly needs to segment customers in order to target the right market. You can do this customer segmentation by creating categories or types of customers based on the data the company has. For example, dividing customers based on demographics, habits (behavioral segmentation), STP, or consumer behavior.

By implementing a marketing database, you can easily segment. Later, this segmentation will help businesses understand and know what products customers really need.

Help Increase Customer Loyalty 

Messages that you have personalized and sent to customers will certainly make them feel valued. This is what causes the growth of customer loyalty to the brand. Because, they feel that the brand gives preferential treatment and thinks about their needs.

Because from customer data collected in the database, marketers can find out what the customer’s pain points are. So, it will be easier for marketers to offer products or services that customers need the most. When customers feel cared for by the brand, of course there will be a desire to continue to use their products and become more loyal.

In fact, it is possible that later they will also recommend the brand through advocacy or testimonials to those closest to them. 

Can Create Better Customer Service 

You can use a marketing database to find out detailed information about customers. When you have detailed customer information and offer them what they need, then of course you can provide better service. As a result, the level of customer satisfaction (customer satisfaction score) will also increase.

Examples of Effective Database Marketing

Now that you know the benefits, here are 3 examples of effective database marketing that can help you connect with your customers more: 

Facebook Messenger Marketing 

Along with the development of technology, there are many new marketing channels that you can try. For example, you can build a targeted customer database within the Facebook Messenger platform. Tools like ManyChat, Chatfuel, and Botsify can help you build Artificial intelligence-based chatbots inside Messenger to build a customer base.

Instead of subscribing to email, subscribers from Messenger are obtained every time someone sends a message to your fanpage.

This will make it easier for you to get to the customer database because they don’t have to enter their email address on the form.

These chatbots apps work just like a regular email automation platform. You can send messages to everyone on the subscriber list or respond to questions from customers easily and quickly.

In fact, chatbots have become one of the most popular digital marketing trends thanks to the ability to reply to messages instantly. 

More Personalized Email Communications

One of the best examples of database marketing is personalizing customer emails based on their previous purchase history or demographic attributes. Thus, their chances of buying more products will increase.

For example, a men’s and women’s clothing brand experienced an increase in sales by grouping their customer email lists by gender.

This way, you can send relevant messages about your products to specific audiences. Even according to MailChimp, marketing campaigns with segmented emails can increase click rates 14.31% higher than non-segmented marketing campaigns. 

Targeted Ads (Retargeting Ads)

The development of advanced technology has made retargeting a powerful tool for marketers. For example, an eCommerce website may send an email based on a specific action a customer takes to return to their website.

Likewise, banner ads with discount offers you can set up to target individuals who have previously visited certain pages in the online store.