What is Database Marketing? Complete Guide

What do you mean by Database Marketing? Do you ever wonder how Database Marketing works?

Database Marketing is a term that is used for maintaining a database for marketing and selling products directly to the customers. Database Marketing is mainly applied to B2C type business.

Database Marketing consists of a database that is maintained by a  company, consisting of names, phone numbers, email ids, etc… of a customer. It is applicable for B2B type of business also. So let’s start the most detailed guide on What is Database Marketing?

What’s In It for me 

1. What is Database Marketing
2. Types of Database Marketing
3. Database Marketing working process
4. Database Marketing Examples
5. Benefits of Database Marketing
6. De-merit of Database Marketing

1) What is Database Marketing?

Database marketing is also known as direct marking or customer relationship management. In simple words, Database marketing refers to collect customer’s data like name, address, email, phone no, or other demographic information to understand customer needs and to generate the targeted list and used to offer a personalized experience.

2) Types of Database Marketing

We can divide database marketing into two types

1. Consumer database marketing
2. Business database marketing

• Consumer Database Marketing

This type of marketing is used by those companies which deal with business to consumer i.e B2C or which sell their product direct to the customer.

Generally,  B2C companies apply some basic strategies like free giveaways, free shipping, discount offers to collect the consumer database. They mainly collect the first and last name, email address, phone number, gender, location data, transaction history.

Once they built the consumer data they can send  personalized advertisement or promotions through the various source of marketing like Social media(Facebook, Instagram, Email, etc.) The main factor in Consumer database marketing is the security of the place where consumer data stored.

• Business Database Marketing

This type of marketing is mainly done for Business to Business i.e B2B companies. In the Business database, the information is more advance compare to consumer database focused on high-value targets that’s why this database is smaller than the consumer database, also subject to lower restrictions and privacy limitations. The Information gathered in this database is a company Email address, company profile, job titles, annual turn over.

3) Database Marketing working Process

To keep database marketing work smoothly, we follow some basic steps

• Data collection

If we want to sell our products in the market it is necessary to find out the targeted audience which is possible through data collection which includes name, address or other demographic information about the customer. This data will be collected from third party bodies or directly through the customer.

• Gather Knowledge from the data

After data collection, the next step would be analyzing the data and gather the information that can be used for the company for marketing. For making a model of customer behavior we can use Database management System or Statistical Techniques through which we can make a decision on which type of customer will be targeted.

• Communicate with the customer

Now we communicate with the identified customer by sending the promotions, updated to the customer by using digital media like through Email. In this process, it is important to schedule that when sending these promotions to customers because if companies flood their inbox with too many updates they are easily referred to these mail in the spam or junk folders.

• Making Business strategies

Database marketing is not just about sending the promotional emails or creating a list about the targeted audience but it is more than that. By deep analysis of this information, we can make future business strategies.

4) Database Marketing Example

Here is some Database a Marketing Example that will enhance your knowledge regarding Database Marketing. Best E.g of database marketing is Facebook. Facebook easily collect user data like First Name, last name, Mobile no, Email, Date of Birth, Gender, location, interest, Education. etc. Using this data it can easily create personalized promotions for the users. Nowadays, like Facebook all social media platforms collect the user personalized data due to this they are creating a huge database.

In starting, most of the companies provide free content to the customers by using newsletter subscriptions, free e-books, free course, free services, etc. for growing database account.

With this data information, they can create email campaigns, they target their audience with Facebook ads or other social media ads. Here I added some common e.g that how can some big brand collect data of a customer.

5) Benefits of Database Marketing

1. C.R.M and Database Tools

You may like data from your audience. This requires you to make sure you use the C.R.M Database System for up-to-date data. This is where we keep our data contacting you, which will save your data, so we can help your audience and their clients, so we can help our business more.

The Database tool allows us to save our audience a chat, call, e-mail, and we sell it to you to keep our data. Please send us a report through the issuer. Your audience will also be judged for the bad information we receive from your audience. This is your latest news and latest offer, which is selling and selling a product.

With C.R.M and database tools, we can provide monthly audience feedback to your audience, provide you with a date on which your audience will be available on a date that is available to us. Your audience must follow the platform on social media and you should encourage them to promote your product.

Last I got a report on your customer and this is where we sell the kit and gain profit on the base of data.

2. Customer Segmentation

The customer segment is as vibrant as the audience, which is helpful for the company. We want to advertise for your target audience as a product that we have to pay for advertising with our advertising affiliate chain.

For your customer segment, we target your audience through social media, TV advertising, Radio Advertising, e-mail marketing, newspaper advertising, and offline marketing. We want a customer relationship. We also want to make sure that our product or service is good, and we will be able to provide you with more information.

To know more information you can read our blog on customer segmentation 

How to segment a customer?

We are also researching a specific customer segment for our audience. It also contains data that is rarely available to me like- work is a job for someone who is working, or who is a purchase. We are unacceptable for age and phone number of the talking.

If you want to take our company for safekeeping, we will have a customer segment that will cover the customer’s habits, interest, age, education, place, income, and income.

3. Relevant Customer Data

If we want to be pure with our customers, we will be targeting the customer, and also engaging our target audience according to offer. We are happy to welcome you, such as your phone, e-mail or an email to your un-graded customer, which will help build the trust of the customer.

6) De-merit of Database Marketing

For any business database marketing have very effective but here are some de-merit also.

1. Maintenance Cost – Database marketing maintenance is very expensive. For e.g Survey Monkey, Mail chimp pricing are too high, in these tool as your subscribers increase monthly bill also increase. So, if we collect data on a large scale without any maintenance and security it ends up at a high cost. (e.g Facebook data leak Case)
2. Incorrect Data – This is a very serious problem in the Business database because employees change their job description from time to time, for this it is necessary to update all the data with the latest information.

So, this was about Database Marketing. We hope, you have understood the concept pretty well. Stay tuned for our next blog.

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