We have come a long way in data processing that today a huge amount of data does not create the sort of chaos among marketers that it one time did. Technology has now allowed data to become simple and maintaining marketing database is beneficial for marketers. The amount and complexity of data is no more a hurdle to effective data management. With technologies like cloud computing and IoT, compiling and storing of data has become simpler than ever before.
When information about the customers of any company is traced and compiled for analytical purposes, it is referred to as a marketing database. The data is generated from a wide range of internal and external sources like sales details, email interactions, warranty cards, promotional engagements and, now more than ever, social media. This data is useful in devising marketing strategies that are in line with latest trends leading to more sales.
According to Helane Becker of Cowen and co., “Marketing database provides the means when used effectively, to obtain, store and synthesize essential data of a business’s current and to-be consumers, that can be utilized to enhance customer interactions and, ultimately, raise profits.”
So now coming to why do we need to glance over marketing database before setting out to start a database marketing campaign? Here are a few benefits associated with incorporating a database marketing strategy within your marketing plan.
Marketing database for Efficiency
Data is nothing less than a treasure trove that requires the right tool to unlock. Managing your marketing database reduces time lost on targeting the wrong target audience, selling to targets that bring limited profits or resources required to keep customers in the purchase cycle.
All this can lower the potential profits and the marketing database that could have been built. The executive has more time to focus on the selling aspect of the business than looking for the right type of crowd or the right product to sell.
Organized data, at your fingertips
A marketing database, once compiled and segregated applies to not just marketing but also the other sectors of the business. Data segregation allows you to identify glitches throughout your business process that is hampering potential clients or sales.
You can then fine-tune your business for the various types of business personas to maximize scoring options. Segmenting customers is rather more cost-effective than a ‘one message fits all’ approach to direct marketing.
Marketing database gets you good leads
Nailing a potential sale depends on how well you can pitch your product to a client. But if you can narrow down the purchase intention of the client, you could construct a pitch that suits those clients that have similar purchase intents. This is where marketing database comes in the picture to provide you with real-time data on potential leads or targets and hence improve sales.
Communicating among your client-base
To know what marketing strategy to deploy is a challenging task given the diversity and range of the current global market. A marketing database provides you an upper hand in structuring marketing campaigns that target the right product to the right crowd.
The marketing database can give you various information about customer needs such as the time of requirement, the budget, possible alternatives for the product, etc. This is better, specifically when putting across emails, as you are not draining your cash sending off catalogs or communications to those who are unlikely to respond. Marketing database is valuable when you need to put your product in the market.
Customer experience is priceless
The way the complexity of traditional and digital marketing process has raised, technicalities like customer journey mapping for various personas are on the rise in importance to help define the most relevant communications and experiences for different touchpoints in the customer journey, and a useful marketing database is what is needed.
It is globally accepted that consumers regard and engage more with brands that can avail them with a more personal shopping journey. Utilizing marketing database for personalization means you can communicate in a way that meets their interests, as well as customize their online experience. For example, analyzing their browsing data to change website pages so that they feature products, services and messaging more suited to them.
Market research with lesser effort
With the successful execution of a marketing database of the consumers, a company can accumulate regular and up-to-date information that can be utilized during market research to pick out where the enhancements can be created and where customer wants are not being met. This information can then be used in developing a product by integrating details derived from the analysis into the design of the new product.
Marketing databases are increasingly being included in the primary requirements of the marketing sector. If you want to match up with the growing pace of generating and converting leads, database analytics is one wheel of the wagon that can keep you going strong. But it also depends on how you integrate and utilize its plus points and not just end up with a whole lot of faulty data.