A Profitable, Powerful Tool for Business: Database Marketing


The term database marketing refers to a systematic approach to collect, consolidate, and then analyzing and processing consumers. Is analyzed both existing customers and potential customers and maintaining the company’s database. Databases in themselves have been used to store customer data for traditional marketing for some time; database marketing method differs in the fact that much more consumer data is logged, and also that the data is processed and used in more complex ways. Marketers can use information obtained through databases to learn more about different customers, choose target groups for specific products or marketing campaigns, comparing individuals or groups of customers value the company, and provide a more personalized or specialized offerings to customers. The key is that instead of just having a mailing list of potential customers or a list of current customers, companies can use technology to evaluate and manage the information in more detail.

One of the main objectives of the database marketing is to promote a product or service to customers with personalized marketing. The method of communication in database marketing can be through any medium. The concept emphasizes the use of statistical methods to develop a model of customer behavior, which are then used to select customers for communications. The more information a company has about its customers the better; have greater amounts of data on customers increases the likelihood that specific marketing model can be built.

In an effort to more effectively target customers, many companies use database marketing to build models of the target demographic group them track down these groups focus their budgets ads on them in the hope that it will lead to better return on investment (ROI) from their advertising. Information about customers can accumulate either internal sales data or purchased from other processes or institutions. With the advancement of the internet, more agents to gather evidence consumers have come by. Many are comfortable completing electronic forms for everything from online shopping to online surveys to set up e-mail accounts; Thus, the amount of consumer information available to companies have increased significantly with the growth of the internet.

Historically, database marketing rely predominantly on direct mail. Due to advances in communications technology, however, now there are many advertising mediums to choose from- from telemarketing to e-mail to the Internet. Every small business should maintain a database of customer names, contact and business information. While many larger companies rely on expensive programs to meet this need, sophisticated programs are not required to do this (especially for small businesses). Microsoft Excel, for example, could be used as a customer information database compilation tool.

Especially for small businesses, build lasting customer is the key to business success is. Business is the return rate on marketing dollars spent can be significantly increased through targeted marketing efforts. A good rule to follow for database marketing is to spend the most money hitting business’ best customers repeatedly, but also save money to experiment with new audiences. Success does not hinge on the size of the company or even necessarily available their resources. Successful companies learn the ability to collect, to store, and then to aim and use customers and prospective information effectively.


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