Six Components of Successful Database Marketing

Posted by on January 25, 2011 in Business Start Up Advice, Marketing [ 3 Comments ]

Database-MarketingWhile large companies and organizations have long relied on database marketing, small business and entrepreneurs now have access to database marketing technology, and are using it to help them target prospects and customers effectively.

Everyone from retailers and restaurants to service businesses and start-ups are using database marketing to connect with potential customers. But perhaps the most powerful aspect of database marketing is how businesses are using it to keep current customers and draw in customers who are similar to their established client base.

Let’s dissect six components for successful database marketing:

1) The Prospect

Unlike mass marketing, database marketing focuses on targeting only the people most likely to respond to your message. The best place to start with building a marketing database for your business is always your current customers. They are more likely than anyone to respond because they already know and like your business.

Your customer list is also a gold mine for identifying the key characteristics of your client base. Knowing this information, you can build or acquire lists of people with shared characteristics. They will be more likely than the average person to be interested in your service.

2) The Offer

This sounds obvious, but your promotion will only be successful if your offer involves something the recipient wants or needs. With database marketing, you can segment or personalize your offers to match each contact’s purchase history, customer value or area of interest. Think from their perspective, and while you should try to cross-sell them related products or services, don’t attempt to change their habits.

The time limit of your offers is also important. If it’s too short, people will miss the offer timeframe. But don’t make it too long, either, or you’ll lose the sense of urgency that you want the offer to create. Look at your customer purchase frequency to help you decide, and test different offer lengths to find what works best.

3) The Special Event

Honoring special events is a great way to pull in business and reflect your personal service. Build your marketing database to include your contacts’ birthdays and “first-purchase” anniversaries. Then, send personalized greeting cards, emails or postcards congratulating them and thanking them for their business, with a special offer to drive future business.

4) The Vehicle

The form in which you deliver your message can greatly influence its results. Email is a cost-effective way to communicate with your current customers on a frequent basis, while direct mail is perfect for grabbing a prospect’s attention, highlighting special promotions, and creating more impactful or personal customer communications. Small businesses and entrepreneurs are also starting to add text messaging, PURLs and targeted online advertising to their marketing mix.

With Variable Data Printing and email personalization, it’s now possible to use all the data you have collected to personalize your mailings with the recipients’ names, unique imagery and offers that target their needs and purchasing habits. Personalized database marketing has proven to greatly increase response rates.

5) Internal Communication

It’s important to get your employees on-board with building your database. Whether you’re collecting data through a point of purchase system, accounting or CRM system, make sure your entire organization knows the importance gaining and recording information about your customers and prospects. Make sure they know how this data will help you serve your customers better, and grow your revenues.

6) Tracking Results

You must track the results of all your marketing efforts. If you aren’t tracking, then you’re just walking blind. And don’t just track costs. Track the profits! Database marketing is all about ROI – Return on Investment. Find out which efforts work and which don’t. Then eliminate the ineffective ones and continue with what works. Always try new promotions in addition to your proven strategies, and when you find something better, use it!

Mail Print is a direct marketing and marketing asset management provider who helps companies manage and deploy data-driven marketing and print communications more efficiently and effectively

3 thoughts on “Six Components of Successful Database Marketing

  1. avatarIsabella Johnson

    Everyone from retailers and restaurants to service businesses and start-ups are using database marketing to connect with potential customers. Great comes to the businesses with this great success.

  2. avatarOliver Scott

    Your database is kind of like your basement. You throw stuff down there in boxes that you know you need but you just don’t have time to sort through it. A database is a veritable gold mine- not just because of the information it contains, but because of the possibility of soliciting deals from those who already know you and trust you; you’re past clients. 

  3. avatarMike Paine

    Understanding your customer base and delivering relevant benefits in the form of offers is critical. Direct mail can be costly, but if done properly it is the most effective medium you can use to target the exact audience. Using add-on tools to have your current customers is another way to build that data-base with like-minded consumer. Generally social networks are aligned with the same target audience, so it just makes sense that a recommendation from your customers can go a long way.

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