Knowing your customers and potential markets is a fundamental part of achieving success in business. One of the ways in which to do this is database marketing, a practise that allows businesses to collate and store information relating to anything from website visitors to existing customer behaviour and prospective clients.
Typically database marketing is carried out using database software such as MySQL, Excel, Access or SQL. The information contained within these databases can then be applied to advertising campaigns and marketing activities. Fundamentally by using this information effectively it is possible to target advertising towards existing clients and prospective opportunities, reducing costs and improving return on investment.
Depending upon your type of business, database marketing will differ greatly from company to company. Generally however, most of the information collected will include at its most basic level contact details, dates of birth and purchasing information. This information is harvested and implemented in a range of different ways to achieve the same end, more effecting marketing efforts.
Website data is an extremely popular way in which to monitor and collect information about existing and potential customers. The majority of websites today use cookies to understand how visitors navigate the site and also to see which pages are the most popular. This information can be used to identify which adverts and products are the most popular and where these could be better promoted.
Email is a valuable tool in database marketing. Companies have a range of options at their disposal from surveys to shipping documents. By understanding where and how orders are made and delivered it is possible to build a good idea of the types of customers and also create strong relationships with clients through effective delivery processes.
Database marketing is not purely about business to customer relationships; equally it can be used by B2B companies to understand their clients. In this instance the databases; instead of containing personal information such as dates of birth, B2B database marketing will frequently include information on the size of the business, the number of employees and the annual revenue. This information can then be used to market products and services towards businesses.
Essentially database marketing can be used in the creation of bespoke, advertising campaigns. It also allows businesses to collect and store valuable information on existing and potential clients to improve the return on investment for promotions and marketing efforts.
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