The influx in interest surrounding the function of marketing and its various forms is constantly evolving. We have seen the rise and fall of mass marketing, naturally developing into a widely favoured niche-marketing offering. By getting a marketing message, offer, or update sent directly to your customers, or potential customers, a better response is sure to be obtained.
Since the rise of Web 2.0, database marketing has continually grown in preference by businesses. Creating a business database is an incredibly powerful tool that forms the basis of your communication stream with your target audience and in turn evokes interest and sales potential.
What is Business Database Marketing?
Business Database Marketing is a form of direct marketing that utilises the organisation power of databases. By using a database to collate all the information you have on your customers a much easier, more obtainable storage system is created. These can large amounts of data and businesses are able to use it and update it as they see fit.
This type of database usually focuses towards business-to-business (B-2-B) functionalities or B-2-B marketers. They contain more advanced information that the average consumer database. The data that is generated within these databases are collated from the companies’ sales, the marketing department and via direct information shared by the customers. This makes them very targeted and unique to the business and their clients, aiming to offer them the best form of communication.
How does Business Database Marketing work?
All database marketing follows four simple steps; collecting data, turning data into knowledge, delivering communications using the database and developing or reenergising your businesses strategies from the information you collate. These are itemised and explained in further detail below.
Data can be collected through your websites data, through email marketing data or via your sales information. This is considered the most arduous task, especially for those starting up a database. It is also important to ensure that you abide by the many rules regulations held around collecting data. The number one priority for businesses should be data collection governance.
From data to knowledge
This stage requires the business to use the data that they have collected and analyse it to help benefit them. There are many statistical methods that can be used to help develop consumer behaviour patterns. These help to target any information that is sent out to the client and help to evoke a positive response, hopefully resulting in a sale.
Communications to the customer
These are the same as traditional direct marketing, the majority of database marketing outputs are completed via email. The database helps the business set reminders to send out updates and tracks if the customers were responsive or not. This stage helps the business understand the best way to target their audience and to find out their receptiveness.
Reenergising your business strategies
It is important to remember that Business Database Marketing is not solely used to organise client data. It is used as a basis to make communications turn into sales. Businesses can use this data to track their responsive customers and offerings that cause the most interest. This can then be used to realign your business strategies and outputs.
Why should I adopt Business Database Marketing?
There are a plethora of benefits associated with Business Database Marketing. The most influential benefits, but not limited too, are itemised below.
Reaching the right audience
By tailoring your databases response levels and email lists your business can track their response rates. Your email marketing will become more worthwhile and you can get better results in the form of sales or engagement from your customers.
Once your database has been set up it helps save so much money and effort in the long term. You can tap into your potential sales groups, target your audience well and see real returns on your initial investments. These are great tools for businesses with both limited and vast budgets.
Developing your business
Many databases offer the chance you’re your business to grow. This can be done by harnessing all that information and connecting with your audience to provide products or services that they want. Communications with your clients is key in any business, if you include them in your business development you are destined to grow and evolve with them alongside you.
There are many possibilities for your business if you decide to incorporate a well-organised structure to Business Database Marketing. Whilst it relies heavily on email marketing, don’t forget the various streams of communication that your business can operate through and gain information from.
Of course, this comes at a price; this can be both monetary challenging and time consuming. To really ensure that you get the best out of your database many tests have to be put in place to ensure business assurance. These are all small tasks when compared to the potential gains that can be experienced by your business if implemented correctly.