What is Database Marketing?
Consumers expect to have unique experiences with brands, and need companies that know them, understand their needs, and surprise them at the touchpoints. The strategy to exceed this expectation is in Database Marketing, or DBM.
It is becoming increasingly common that data is the key to a successful marketing strategy. But what can a customer database really do for your company?
Of course, data is not enough: you need to know what to do with it. And that's why many companies are turning to database marketing as a strategy to develop lasting customer relationships and brand loyalty.
The world we live in is incredibly data-driven. Companies in all industries collect tons of data about their customers' preferences and behaviors.
Working with database marketing is about interpreting this data in order to reach a particular audience more effectively by knowing what they want to see, how and when. At the same time, DBM enables continuous optimization of marketing efforts to increase ROI (return on investment), as every investment is assertively applied.
In short, database marketing enables companies to create relevant messages and meaningful experiences for their audiences.
Why is database marketing so important for brands?
The most difficult step in implementing database marketing is convincing your employees and managers that it is really important. According to Ascend2, companies that adopt database marketing are more likely to gain an edge over the competition and increase profitability year after year.
Database marketing is not a free and immediate solution: you need to implement and maintain customer relationship management (CRM) systems and efficiently collect relevant data.
How to build database marketing strategies?
First of all, it is necessary to have a consolidated and organized database. Many companies are concerned with collecting as much data as possible about their customers without thinking about how this information will be used. The result is a "bunch" of data, and companies end up wasting a lot of it because they don't know how to filter and organize it.
Remember that having leads coming in all the time is great, but even better is knowing what to do with those and the data they are providing. Therefore, it is important to collect only essential data that will actually be used to develop database marketing strategies. After all, collecting only necessary data is one of the guidelines of the General Data Protection Law.
There are different ways to build a database. It depends on the types of interaction with the audience and how companies offer information and content: before collecting data, you need to think about what information your company needs to know about its customers.
No one wants to overwhelm their customers by asking for information. Think about the information that is most important to you and your type of business. When companies ask for too much data, it tends to decrease your customers' willingness to complete any action.
People are getting more and more careful about sharing their data on the Internet. So make sure you offer something in return, like exclusive content, offers and other benefits.
It is also important to know which database marketing category your company falls into, such as B2B or B2C, for example. This will help you determine what kind of information is important for your strategies.
What can we conclude then?
If your company doesn't use database marketing in its overall marketing strategy yet, it's time to start. If you do, it is important to remember that maintaining a customer database is an ongoing process.
Without quality data, you will have nothing to draw on when it comes to improving your marketing efforts. Keep in mind that maintaining and optimizing your database is just as important as expanding it, so be patient and think about the best ways to make the most of your database.
And do not get frustrated if you cannot collect or use the data collected from your customers, we know that it is not such an easy task to do. That is why, as a specialist in this subject, INDICO is here to help you.
Meet INDICO
Here, we transform your Big Data into intelligence, boosting your company to achieve better results with actions and customer-focused strategies. Our team of experts in technology and marketing is ready to convert your data into innovative solutions that enhance the user experience, generate loyalty and ensure real results for your business.
Contact us and discover the Indico way of revolutionizing the market.
