According to 90% of leading marketers, personalization is a significant contributor to the profitability of your business.
But there’s more to personalization than just marketing to customers based on their purchase history.
Imagine if someone bought toys for their toddler nephew’s birthday only to get tons of marketing emails about toddler toys. This person doesn’t have any kids of their own, gets annoyed at the irrelevant marketing, and unsubscribes from your email list.
Database marketing can help you avoid these costly mistakes. It helps you create personalized marketing communications, lets you create targeted campaigns, and so much more.
Keep reading for everything you need to know about database marketing in our ultimate guide.
What Is Database Marketing?
Database marketing is a type of direct marketing where you collect customer data and analyze it to create a personalized experience for each of your customers. You can also use this personalized experience to entice potential customers.
Some of the data you might collect Australia Accountant Email Lists for your database marketing strategy includes:
- Customer names
- Customer phone numbers
- Customer addresses
- Transaction data
- Any support tickets sent
- Purchasing behavior patterns
To collect this data, database marketers use a CRM system, which stands for Customer Relationship Management.
This is software that lets you gather all your data in one place and gives you the tools to make sure every customer interaction with your company goes smoothly.
Any type of company can benefit from database marketing, from brick-and-mortar stores to law firms.
The Difference Between Database Marketing and Direct Marketing
Many people use business database marketing to collect customer names and addresses so they can mail prospects their flyers or postcard. This is traditional direct marketing.
With database marketing, you might send out fewer mail or emails, but you’re targeting your customers with personalized information. You learn how your customers want to be marketed to and tailor your strategy to suit the best method to reach them.
What Can I Do With Database Marketing?
If you’re used to sending your realtor postcard to dozens of city blocks and hoping for an inquiry call, then you’ll be glad to know that database marketing can help you create a much more efficient strategy.
Database marketing allows you to do the following:
- Create targeted campaigns
- Add a loyalty program for long-time customers
- Give discounts to new customers
- Use analytics to figure out the best time to market
- Use analytics to predict customer behavior and buying patterns
- Segment customers into detailed groups
You can see how all the above functions of database marketing allow you to create an incredibly personalized experience for your customers.
And when you personalize your brand messaging, you stand out from your competition and keep your brand top of mind.