What is Database Marketing?
Database Marketing is a way of marketing a Company's product to potentially interested customers. It involves maintaining a database of customers and some information like name, address , contact information ,purchase history, their interests etc. Database marketing helps make intelligent marketing decisions.
How do Marketing Companies employ Database Marketing?
Companies store their customers information in a Database, every time there is a communication with the customer either through a new purchase or through a complaint or suggestion from the customer, the information is stored in the Database. It helps to ask the customer for products he might be interested in buying and what kind of communication he would like to receive from the company, this not only helps in building the customers trust and explaining to the customer that the company cares about the customer but also helps the company in getting information that may be useful in the future. Large companies have a vast amount of data on their customer because they have a large customer base. The larger the Database the better the chances of building an effective Database Marketing Strategy. Some companies which are looking for potential customers other than their previous customers buy data from other entities and use the data.
What are Some examples of Database Marketing?
1. Imagine an insurance company selling motor vehicle insurance wants to market its insurance products. The company can employ direct marketing where they contact every contact, some of the contacts may not even have a motor vehicle, so this may backfire and the insurance company gets a name as a nuisance. In order to avoid this they get a list of customers who have a motor vehicle and may be interested in buying Motor vehicle insurance, they either buy data or get it from their contacts and add the customers who are already in its database. They market to these customers so the probability of positive response becomes high, this is an example of database marketing
2. A greeting card company maintains a database of customers who buy products during seasons, if a customer buys its products during new year then they send mails to that particular customer before new year, if a customer regularly buys its products during Valentine's day then they send mails in that season, this is an example of database marketing.
What are the steps in effective Database Marketing?
Step 1: You should start building a database
Your database should be built with the objective of keeping track of your customers and potentials customers , the database should be well organized so that the information can be retrieved in a structured manner and can be pulled effectively by people and computer programs, you should plan for when the database will grow large and maintain it properly
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Step 2: You should constantly update information in the Database
The database should be constantly updated with the latest information. A database not maintained well is like a brand new unmaintained vehicle whose oil is not changed on time and can rust. You should constantly update customer information in the database and add new purchases, update any changes in contact information and customer interest information
Pixilex can help you maintain your database.
Step 3: Get information from the customer regularly
You should get as much information from the customer on a regular basis so that you keep constant track of the changes and updates that you need to make to your database.
Pixilex can help you keep track of your customers.
Step 4: Use the database
4. You should use the database to market, the usage of the database using intelligent human power or intelligent algorithms is a good way to find potentially interested customers.#
Pixilex can help you reach out to your customers.
About Pixilex: Pixilex is a premier digital and content marketing advertising agency in Bangalore with a single goal, aimed at boosting sales. When it comes to advertising, most would think of magazine ads, TV commercials or billboards, but Pixilex is redefining advertising. It’s all about grabbing the limelight on its clients and their product or services. What makes Pixilex tick, is the core workings of an ad agency, coupled with gritty, creative content that sticks and innovative ways to put it out there for the world to see. The means are endless and the sky’s the limit.
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