Database Marketing

Database Marketing
Database Marketing
At the heart of CRM is database marketing. Your company needs to develop separate databases on customers, employees, products, services, suppliers, distributors, dealers, and retailers. The databases make it easier for marketers to develop relevant offerings for individual customers.

In building the customer database, you have to decide on what information to collect.
  • The most important information to capture is the transaction history of each buyer. Knowing what a customer has purchased in the past affords many clues as to what he or she might be interested in buying next time.
  • You could benefit by collecting demographic information about each buyer. For consumers, this means age, education, income, family size, and other attributes. For business buyers, this means job position, job responsibilities, job relationships, and contact addresses.
  • You may want to add psychographic information describing the activities, interests, and opinions (AIO) of individual customers and how they think, make decisions, and influence others.
The second challenge is to get this information. You train your salespeople to gather and enter useful information into the customer’s file after each sales visit. Your telemarketers can gather additional information by phoning customers or credit rating agencies.

The third challenge is to maintain and update the information. About 20 percent of the information in your customer database can become obsolete each year. You need telemarketers to phone a sample of customers each working day to update the information.

The fourth challenge is to use the information. Many companies fail to use the information they have. Supermarket chains have mountains of scanner data on individual customer purchases but fail to use these data for one-to-one marketing.

Banks collect rich transaction information that mostly goes unanalyzed. At the very least, these companies need to hire a person skilled in data mining. By applying advanced statistical techniques, the data miner might detect interesting trends, segments, and opportunities.

With all these benefits, why don’t more companies adopt database marketing? All this costs money. Consultant Martha Rogers of Peppers & Rogers Group does not deny the costs: “Establishing a rich data warehouse can cost millions of dollars for the technology and the associated implementation and process changes.

Throw in a few hundred thousand for strategic consulting, a little more for various data integration and change management issues, and voilà, you’ve got yourself one hefty investment.”

Clearly one-to-one marketing is not for everyone. It is not for companies that sell a product purchased once in a lifetime, such as a grand piano. It is not for mass marketers like Wrigley to gather individual information about the millions of its gum-chewing customers. It is not for companies with small budgets, although the investment costs can be scaled down somewhat.

However, companies such as banks, telephone companies, business equipment firms, and many others normally collect lots of information on individual customers or dealers. The first company in each of these respective industries to exploit database marketing could achieve a substantial competitive lead.

There is a growing threat to effective database marketing that is coming from the inherent conflict between customer and company interests.

What Customers Want:
  • We want companies not to have extensive personal information about us.
  • We would be willing to tell some companies what we might like to be informed about.
  • We would want companies to reach us only with relevant messages and media at proper times.
  • We would want to be able to reach companies easily by phone or e-mail and get a quick response.

What Companies Want
  • We want to know many things about each customer and prospect.
  • We would like to tempt them with offers, including those that they might not have awareness of or initial interest in.
  • We would like to reach them in the most cost-effective way regardless of their media preferences.
  • We want to reduce the cost of talking with them live on the phone.

The irony is that as companies learn more about each customer in order to make more relevant offers, customers see this as an invasion of privacy. The matter is made worse by intrusive junk mail, junk phone calls, and junk e-mail.

As privacy concerns rise and lead to legislation curtailing what companies may know about individual customers and how the companies can reach customers, companies will be forced to return to less efficient mass marketing and transaction oriented marketing.

One answer is for companies to practice permission marketing, as promoted by Seth Godin. You should ask your customers what information they will volunteer, what messages they would accept, and what contact media they would prefer.


  1. Blog has good information on topic database marketing services. Company needs to develop separate databases on customers, employees, products, services, suppliers, distributors, dealers, and retailers.

  2. This comment has been removed by the author.

  3. Good one ! database marketing can be a tedious task if the databaseare not well sorted, categorized and verified manually. You don't want to be marked as a spammer for approaching the wrong prospect. Be sure you use the right database with respect to your business niche. If you are looking to outsource your online marketingthe pain of choosing the right database would be taken by the firm which does your online marketing.

  4. Useful and Informative.. Database marketing is a good investment for any company but, have to invest intelligently, it can have a dramatic impact success and growth..

  5. Wow, it is just so good to know about these wonderful strategies to grow a business. I also think that there are umpteen numbers of methods but we should be focusing on the best ones. I have a home based business so I am using the business sms and smm services. Both are working wonderfully for me.

  6. Good to know about the email list business. I was looking for such a service for a long time to grow my local business but the rates that other companies were offering were not satisfactory. Thanks for sharing the recommendations in this post!
    USA Business Database
    Buy Email List
    Consumer Email Lists
    Business Email Lists
    USA Phone Number List

  7. I can see that you are an expert at your field! I am launching a website soon, and your information will be very useful for me.. Thanks for all your help and wishing you all the success in your business. affiliate marketing

  8. Hello There. I found your blog using msn. This is an extremely well written article. I will be sure to bookmark it and return to read more of your useful information. Thanks for the post. I’ll certainly comeback. Magento Development Company

  9. Again this has resulted in growth of IT and Search Engine Optimization firms with a role of service provider as per client needs Digital Marketing

  10. pittsburgh seo services I would like to say that this blog really convinced me to do it! Thanks, very good post.

  11. I admire this article for the well-researched content and excellent wording. I got so involved in this material that I couldn’t stop reading. I am impressed with your work and skill. Thank you so much. pittsburgh seo company

  12. We are tied directly into the sate’s renewal database which allows us to process your request almost instantly. this page

  13. Marketing via various channels, whether traditional or digital, is widely used by businesses. However, more businesses are turning to digital marketing strategies these days. Because of the pandemic, everything is going digital, and more users are joining this digital world. This increases the likelihood of obtaining high-quality leads and sales. However, many businesses continue to rely on outdated methods that produce slow results.

    Adopting digital marketing techniques for your company is critical. This article was created to address all of these concerns. But, before we get into the reasons, it's important to first define Digital Marketing.

  14. Applying beauty products can become a ritual that brings a sense of mindfulness and focus to one's daily routine. Taking the time to care for oneself and being present in the moment while engaging with beauty products can promote a sense of well-being and relaxation.

    The beauty industry is a significant contributor to the economy, providing employment opportunities, driving innovation, and supporting various businesses along the supply chain. The purchase and use of beauty products contribute to economic growth and the livelihoods of many individuals.

  15. These creams can help alleviate dryness, flakiness, and discomfort often associated with very dry and sensitive skin. They work to soothe and protect the skin, reducing redness and promoting a healthier, more balanced complexion.

    When selecting a moisturizing cream, it's always advisable to patch test the product on a small area of your skin first to ensure it doesn't cause any adverse reactions. If you have specific concerns or conditions related to your skin, it's best to consult with a dermatologist or skincare professional who can recommend the most suitable moisturizing cream for your specific needs.

  16. A comfortable chair is essential for a CEO's office. It should be made from a high-quality material, such as leather or mesh, and it should be adjustable to provide the CEO with the support they need.
    A bookcase is a great way to store books, files, and other office supplies in a CEO's office. It should be made from a high-quality material, such as wood or metal, and it should be sturdy enough to hold the CEO's belongings.

  17. This comment has been removed by the author.