Database marketing is the process of recognizing, accumulating and then examines information about a company’s customers. The database contains information related to different types of customers. The main aim of database marketing is to gain profit. Under database marketing complied using data gained from different sources such as information of sales, warranty or guarantee card, promotional mails, social media. The first and main aim of database marketing is to use the data within database and use these data to make marketing strategies that basically gain profit. Database marketing is very useful in these days. It is easiest way to get information related customers within few seconds. And it is also useful to be in touch with customers. Marketing database for business is also an important equipment of database marketing.
The key reason behind database marketing is building and maintains a relationship with the customers. There are various benefits from database marketing, in which the key is to be associated customers with company, as well as to add new customers to the company. The database can be reviewed by the company’s development, profit, loss etc.
THE THREE MAIN STAGES OF DATABASE MARKETING :
- DATA COLLECTION :
Data collection is most important stage of database marketing. This is like a foundation in database marketing. Under this various information related to existing and potential customers is collected. Which are willing to join company? And then the data associated with them is displayed in such a way that they do not have trouble viewing the activities related to the company.
- TURNING DATA INTO KNOWLEDGE :
This is the second stage after data collection is completed it requires accumulating the data so that it can be used in effective marketing and communication. Added data is used as knowledge. The data can be used in the business, sending messages to existing customers and potential customers about business related information.
- DEVELOPING AND EVOLVING BUSINESS STRATEGIES :
This is the final stage of database marketing. After data collection and turning data into knowledge we have to developing and evolving business strategies. Collected data can be used for making good business strategies for a company. For example, modifying company communication, the allocation of resources, pricing, feedback, and other many concerns that will aid high profit in line with the information collected.
WHY DATABASE MARKETING IS IMPORTANT :
In these days database profit is very important for companies. We’ll discuss main reason about why database marketing is very important in these days-
- GAIN PROFITABILITY :
Database marketing is very useful for companies to gain profit. It allows businesses to segment and target its effort in a very effective manner. It is improving efficiency and profit margins.
- IMPROVE MARKETING COMMUNICATIONS :
Database marketing is very useful for improve marketing communication with its potential and existing customers. Right and effective data increases the quality level of communications with existing and potential customers. It is allowing a company to effectively improve good relationship with their customers.
- CALCULATING CUSTOMERS LIFETIME VALUE :
It is a prediction model used in marketing business that can calculate the estimate of what the lifetime relationship of an individual customer will be worth to a business. By using database marketing you can calculate the accurate customer lifetime value (CLV) within few seconds. So it is very effective way for doing business.
- ANALYTING SOFTWARE :
Growing business need to look their customer’s behaviour across an even more varied number of retail channels, including mobile apps, website and social media. By using database marketing it becomes very easy for companies to build strategies according to reports.
- LOYALTY PROGRAMS :
Database marketing makes it easy for companies to launch loyalty programmes for their customers as they can store data about sales history. It allows companies to select their best customer of the year according to sale history so they can reward him or her for their good relationship with company.