No matter what your service or product is, you need to reach out to potential customers to sell it. Many businesses rely on social media.
While social media platforms are a wonderful way to get people involved, they have two major drawbacks. First of all, you can have tens of thousands of followers on the platform of your choice. However, thanks to an algorithm that very few (if any) people consider, you reach only a small percentage of those followers with any post.
Second, what if that platform ever goes away? Don’t assume for a minute that you will receive a clean list of contacts. If a platform ever shuts down, your audience will evaporate in seconds.
Fortunately, knowing this is half the battle. Now that you understand that you are not the “owner” of your contacts through social media, it is time to take ownership and responsibility for how to protect your audience and their contact information and data.
It’s called database marketing and you know why it’s important for your business as well as how to use it properly.
What is Database Marketing?
Before our digital landscape expands as much as it does, businesses will collect names and addresses and send mail pieces such as postcards, brochures, flyers, etc. directly to potential and existing customers.
While traditional direct marketing still exists and can be an asset to your business, digital options give business owners a world of choice when it comes to reaching their audience. It lets you know. How Customers want to be marketed and then get what they want.
Database marketing is where businesses collect customer data such as:
- Phone numbers
- date of purchase
- History of customer support
Once collected, this information is used to create personalized experiences for each customer and home to purchase personal and information about them.
The Benefits of Database Marketing
Now that you understand what database marketing is, you can determine if it’s right for you.
Hint: This might be right for you.
No matter the size of your business, keeping your database fresh, constantly growing, and growing it is essential to the success of your business. You will see a variety of benefits, such as:
1. “Owner” of your contacts.
Information is power, and when you put all the power into the hands of social media platforms, you risk your future. Social media is great and should be part of your marketing plan, but it shouldn’t be a complete plan.
2. Talk directly to your audience members.
It’s too high there! It’s impossible to turn on the television or radio, or surf the web without bombarding marketing and sales messages, which is the next best thing for you. Absolutely Must have.
The purpose of these messages is to spread a wide network and to any customer they can. However, you are sensible. You know that in order to be “heard” above the noise, you need to adjust your messaging to your specific audience. Database marketing allows you to do just that.
3. Identify the avatar or buyer personality.
Who is your best customer? How do they live What keeps them awake at night? What problem have you solved? Where else can you find people like them?
Database marketing allows you to understand your ideal customer and then target those who “look” like them on paper.
4. Distribute to your customers.
Create different “audiences” based on their demographics, behaviors, and purchase history. This will help you to better understand them and offer them more of what they want and less of what they lose interest in.
5. Create loyalty programs that encourage repurchases.
Find out what is the best channel and time to connect with your customers so that you get maximum engagement.
6. Put your customer service in high gear.
Give your staff a chance to see all the interactions a user has had with your brand.
Database marketing can be the answer to your business needs. Of course, like anything, you have to do it right to see a good return on investment. To do this, we need to consider creating a database marketing strategy.
Avoid these disadvantages of database marketing.
Before we consider the strategy, let’s look at some of the challenges that you may encounter with database marketing.
1. Lack of data
People move, change jobs, change names, drop email addresses, and start anew. Such life changes can make their information relatively useless.
2. Accuracy of data
There are typos. Sometimes accidentally, but sometimes intentionally. Some users know that when they provide an email address you will send them marketing emails, and they do not want to hear from you.
it’s fine. If they don’t want to hear from you, you don’t really want to reach them because they are not your ideal audience.
While there is no easy way to avoid purposeful typing errors, it is possible to avoid accidental errors by choosing a drop-down option instead of an empty comment box. When you talk to people, you can also verify their information.
It is important to clean up your database frequently, clean up contacts with outdated or inaccurate information, and integrate contacts with multiple profiles. It allows you to focus on reaching those who May be Take care of your next client and those who are already there.
3. Use customer data quickly and efficiently
If you’ve ever received an email after two years of doing business with someone, this is probably a shock. Chances are they don’t update their database in time so they completely lose the window to sync with you after this first conversation.
Don’t make that mistake Once you have the information, greet them somehow and then contact them according to a regular schedule to nurture the connection. You will also want to keep their information with you.
Tips for Creating a Database Marketing Strategy
Without strategy, you have a lot of data. Have a solid strategy from the start and keep your database working for you. Here’s how:
1. Identify who you want to reach.
Who is it that you would like to do business with and what does it look like on paper? This can include demographics such as age and gender, marital status, income level, and location. It can also include psychographies such as their interests, activities and opinions.
Create an ideal customer profile or personality and then use it to determine what information you need for your database.
2. Make it a team effort.
Although the title may include “marketing”, database marketing can affect many departments in your organization. The marketing, sales, and customer service or support departments interact with potential and existing customers. Seek their feedback to create the most effective database.
3. Use the right tools.
There are numerous database marketing software options to suit your needs. Do some research, ask for recommendations, and find the one that’s best for your business. After choosing a solution, provide your employees with the training they need to make the most of it.
4. Collect customer data.
Now that you know how to collect data, it’s time to decide what you need and get started. The options are endless, but here are a few things to consider:
- Demographic data – This includes gender, age, marital status, parental status, health and financial status.
- Psychographic data – It includes interests, actions and opinions. What do they value? What lifestyle do they lead?
- Acquisition data – Through which channel did they enter?
- Technology and activity data – How do they relate to your brand? Is it via desktop or mobile device? Android or iOS? Do they use your website, social media pages, or mobile app to interact with your brand?
- Transaction and correspondence data – How often do they buy from you and what do they buy? Have they reached out to the sales situation for any kind of help?
5. Keep your data clean and secure.
As we mentioned earlier, it is very easy for data to get old and useless. Review it frequently and back it up so that if something happens to your database, your entire customer history is not lost.
6. Don’t be scary.
You can learn a lot about people on the Internet. Just because you Can do You don’t mean Should Respect your customer’s privacy and do not collect or mark information about them that will not help the customer achieve the ultimate goal of earning and better serving them.
Examples of database marketing.
Database marketing can be used in many ways and it really depends on your needs and goals. Here are just a few ways you can incorporate database marketing into your business.
Provide amazing customer support.
Getting customers is important, but if you can’t keep them, you’re just spinning your wheels. Your customer service team must have access to your customer database. This allows them to review a customer’s purchase history when they call with an issue.
Imagine for a second you were transposed into the karmic driven world of Earl. Your method will be personalized and time will be saved in explaining them.
For example: “Thanks for calling. I see you have purchased our new state-of-the-art alarm system. I can help you set it up today.“
Find out what products and services your customers need.
Talking about the weather is a great way to get in touch with a customer or potential customer. Do you know what the better way is? Don’t try to sell them things they don’t need.
For example: Looking at the customer profile, you can see that they live in a high-rise apartment, have no pets, and have small children. You can stop trying to sell them the latest doggie strings.
Identify your best customers and potential up sales.
Once you understand who buys most often and in large quantities, it becomes easier to identify your sales options.
For example: Your customer may have been receiving wine monthly for two years. You just started a cheese add-on of the month. You can target them with emails designed to introduce new product opportunities.
There are different ways to reach your existing and potential customers. A well-rounded marketing plan will include many of them. However, if you really want to get the most out of your marketing, make sure you include database marketing.
You will reach the customers you want to reach, and learn how to talk to them in a way that helps them listen to you. Your database will be a gift that keeps giving.