What is Database Marketing?
Database marketing is a form of direct marketing that uses a business's valuable database to tailor sales and product messages to people who are the most likely to buy. These databases are filled with customer names, addresses, phone numbers, purchase histories. This information then feeds into tactical messaging to encourage product purchasing as part of a direct marketing campaign.
The ability to speak to customers in those moments that matter during their decision process is a powerful tool when used correctly. The right message at the right moment can flip someone from clicking off of the shopping bag to completing the order, for example, many retailers now use an email prompt to people who have left items in their shopping basket online to encourage the final push over the line and complete the transaction.
Once that first transaction is completed a chain reaction of keeping in touch and opportunities to raise customer brand affinity begin. This reaction enters a customer into a life-cycle journey designed by a strategic database marketer to identify where the best wins are going to be to make a purchase.
Why is Database Marketing Important?
Database marketing uses customer data to create a tailored campaign into converting that customer once again. Over time continual carefully selected nudges to the customer will build brand trust, raise brand recognition, and if timed correctly can significantly increase sales. The purpose behind database marketing is to make sure that a company is speaking to the right customers, with the right message, and the right time. There is a vast opportunity for personalisation and to tailor an individual's brand experience.
Responsibilities of a Database Marketing Manager
Database Marketing Managers plan and implement strategies for targeted marketing campaigns. The core goal of this position is to improve business relationships with customers through communications. For this position to be filled effectively, the database marketing manager need to be able to analyse customer interactions and use this information to influence their understanding of the customer life cycle. The analysis of a customer's various touch points with a company will identify potential for opportunity to build a strong relationship and where a relationship might need a little more love to rebuild brand affinity.
Key responsibilities include:
Automate the marketing process through effective use of the CRM and lead management tools
Analyse marketing and sales data to inform strategy
Strategise forward-thinking and ever-evolving email campaigns to reach the right people
Present insights from campaigns and use these to influence improvements
Monitor and maintain data quality within the marketing database
Review new technologies to improve efficiency and productivity of marketing and sales team
The Future of Database Marketing
Maintaining existing customer relationships has proved to be a more cost-effective way to generate sales than continually acquiring new customers, simply for your existing ones to lose interest (like filling a bucket with a hole in the bottom). This universal need to stay in touch with existing customers and ensure that they maintain loyal to the brand, has driven the number of database marketing positions available on the market. As design tactics evolve, database marketers will need to keep up to date with the latest fashions whilst making sure that the core message is still being delivered to the relevant customers.