subject: Database Marketing - A Brief Explanation [print this page] Database Marketing - A Brief Explanation Database Marketing - A Brief Explanation
Database marketing is a new way of marketing that is quite popular these days. But what exactly is this database marketing? Simply put it is collecting a reservoir of client information and storing it in a way that it can easily be accessed for use in directing marketing efforts. However you need a database. There are two ways of generating a database for marketing.
This reservoir of prospective customer data may either be created or purchased from companies that are in the business of collecting and selling consumer databases. These companies get the permission of their clients to forward their data to sales companies. This can be done through websites or on contracts (the tiny blocks you tick unthinkingly when buying a cellphone contract, for example, saying things like "Do you give us permission to send you information about additional products that become available?"). It could also be helpful to manage a database for your existing customers and any new clients you get, as that would enable you to maintain relationships with your customers and also give them the impression that you genuinely care, thus ensuring a degree of brand loyalty.
As it pertains to the usability of database marketing, remember to consider the following scenario: you have a company that sells water purifiers and have a need to increasethe sales figures dramatically.You might randomly call people (a process called cold calling) and attempt to sell your product, you will probably get rejected at least 80 percent of the time. You need to consider first, who the people are who would be possibly interested in buying a water purifier? Surely not students, as students would not be interested in buying products like this as they are more interested in games and music than their health. On the other hand, however, housewives or married men or entrepreneurs making use of their own offices might be considering buying a water purifier. For those who have a sorted database of these potentially interested people, the sales success rate is sure to increase by tenfold. Database marketing can increase your sales success rate from less than twenty percent to close to eighty percent without having to change your sales tactics any further than targeting a specific market.
You need to keep a very important factor in mind when using database marketing though. You need to be careful of contravening privacy laws. Only get your databases from companies who can prove that they have permission to sell the contact information for those people on their database, if this isn't the case, you could find yourself with a lawsuit on your hands. Only collect the information that you need, make sure you do not go digging deeply into the personal lives of your clients as that could place the reputation of your company in jeopardy. Database marketing could be a very successful weapon against the competitors if used correctly and intelligently. It would not only help in getting new customers but will also ensure brand loyalty and increase brand recognition.
