Database marketing is a concept that’s become easier through the improvement of technology, even though the information available has been there for years. With a more challenging effort, companies could have extracted customer information from their databases already 20 years ago. That was long before big data came along and helped organize it all so it wasn’t such a Herculean undertaking for marketing departments.
The true advantage of database marketing is taking information that you already have on customers and using it to bring a more personalized feel to your marketing campaign. Having more thorough knowledge about the personality of each customer can bring more insight into nurturing the personalized customer-business relationship.
Now that artificial intelligence is right around the corner, extracting this information is going to be easier than ever. Regardless, you have to find specific things about your customers that are truly going to matter rather than wasting time gathering everything and eliminating things not useful.
Gathering Information for Personalized Communication
When you know what your customers truly want and usually buy from you, it enables an email marketing campaign that looks like personal notes. Personalized marketing has been going on for a few years, and big data is helping even more in understanding individual customers to the core. The first time this was used, it probably took customers aback wondering how a store knew so much about them. Once artificial intelligence becomes mainstream, companies will know so much about customers that marketing emails will look like they came from a close family member.
Most customers are used to some element of this by now, and it’s worth delving into your database to organize customer information. Despite privacy being an issue, so much can be extracted based squarely on what people buy. Those marketing emails are also made more personal when you use their first name.
Segmenting the Best Customers
Most database marketing technique is done through segmenting a company’s best customers. This can help identify certain customer categories for more targeted marketing campaigns. You’ll be amazed at how certain people fall into specific categories when it comes to the purchase of certain products. Email marketing campaigns can be easier organized this way while enticing the customers who are most likely to buy from you.
At the same time, segmenting can also be done for those who don’t buy from you regularly. These people can be eliminated from the marketing campaign, even if there might be some who may be neutral and could be swayed with emails that target their general interests.
Information for More Market Research
Sometimes doing database marketing can mean extracting customer information for a bigger picture rather than directly targeting certain people. It saves time and money using only a database to find valuable information on customers. In the long run, more insightful surveys can be designed as well as putting together better focus groups.
The advent of better database marketing ability helps companies understand customers more than they ever have. It’s one element of how using private information can be used for everybody’s welfare, and it doesn’t hurt to let customers know what those benefits are in advance.