As more customer data is available to marketers like never before, the importance of database marketing has grown tremendously. To use this data in creating personalized customer experiences, marketers need a unified view of multiple customer touchpoints from where data is generated. Only then, they can utilize the data to map the customer journey and identify strategies that can better engage the customer with the brand.
Database marketing is all about collecting, analyzing and classifying customer data sourced from multiple channels so that effective marketing messages can be created and delivered to customers to drive more conversions.
Here are some of the database marketing strategies to set marketers like you on the right path:
1. Segment Your Contact List
Your database marketing efforts should begin with the segmentation of your contact list or email list. This is because a segmented list helps boost open rate, click-through rate and the overall revenue graph of your business. By segmenting customer contacts into small categories based on attributes such as customer’s purchase history, company size, industry type, web behavior, purchase interests, sales revenue, etc., marketers can tailor campaigns based on what customers want. It enables them to deliver a personalized experience to customers through customized product recommendations, and much more.
In order to use the information available in your database in the right way, segmenting your list is important. Once you know which customer wants what, you can accordingly tailor marketing messages and communicate to engage, attract and encourage for a purchase. With its ability to drive 66% higher conversions, a well-segmented database is undoubtedly an integral part of your database marketing strategy.
2.Optimize Multiple Customer Touch Points
Database marketing aims to create the best-personalized experience and for that brands need to be available on various platforms to connect and engage with the customers. However, it’s not just about connections, brands need to identify the touchpoint where their customers are most likely to engage and be active. By customer touchpoints, we refer to every channel where customers and business exchange information, handle transactions and provide or avail services. These channels include in-store cashiers, websites, direct messaging, social media, call centers, email, etc.
Customer experience touchpoints are where customers and businesses engage and do business. Here they exchange information, avail and sell services, or handle transactions. All this is done via channels like call centers, social media, direct messaging, in-store cashiers, email, website, etc. Both online and offline channels provide you with an opportunity to improve your overall customer experience. In order to address customer needs and improve the overall experience, brands need to optimize database marketing to offer solutions at the right time at every touchpoint across the customer journey.
3.Grow Your Total Available Market
Database marketing enables marketers to make the efficient use of the available data acquired from different internal as well as external sources such as CRM, social media, email correspondence, and more. With the proper classification and scrutiny of this customer data, brands can identify and connect with their ideal customers. Based on the complete data available on the buyer, marketers can, therefore, tailor their marketing approach and plan strategies accordingly to grow their available total available market or total addressable market (TAM). Doing so will ultimately help in driving better conversions and result in increased revenue generation.
4.Expand Your Existing Accounts
If you feel there is more scope to sell to your existing customers, don’t hesitate to infiltrate into your customer account to better understand their needs. This is where you get the opportunity to expand your existing market by targeting already interested customers or friends and colleagues of your existing clients. The key here is to find profitable opportunities within existing customer accounts as it is easier to sell to an old customer than to a new one.
5.Track Analytics to Measure Performance
Database marketing makes your marketing efforts measurable as from click-through rates to open rates, you can track and measure all. It allows marketers to manage contacts, events, and members along with keeping an eye on customer behavior and feedback. However, before beginning with your plan, remember to be clear about what is your goal that you want to measure. Once your goal is clear, you can start measuring the performance metrics that will gauge your progress towards those objectives you have set.
You can measure performance in terms of the number of leads, revenue, conversion rates, number of new purchases, and net profit. However, don’t forget to put the insights gained into use in your next database marketing campaign. Each campaign provides accurate data that can help you improve strategy in the next campaign.
With these strategies in use, marketers can successfully materialize their plans to boost lead conversions and increase ROI. While many businesses have already started utilizing the many benefits of database marketing, now it’s your turn to get started.