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Database Marketing and Insights

Database Marketing is a process to gather information about your customers and potential customers to gain a better understanding of them and their needs. Then communicating with those people by email, social media, phone, post or in person in the ways that are more relevant and useful.

Database Marketing and Insights

  1. 1. DATABASE MARKETING & INSIGHTS @somidhdas
  2. 2.  Database Marketing is a process of identifying, collecting, and analysing significant information from all sources (internal and external) about your customers, leads and prospects to drive strategic marketing and sales decisions.  Why should use Database Marketing?  Your marketing messages become more targeted as you can select who will receive them  You can tailor your offers and marketing for different segments of your prospect base  You collect feedback from your prospects, and adjust your messages accordingly 2 Database Marketing – Definition @somidhdas
  3. 3.  Who Should use Database Marketing?  You work in a market place with a limited number of prospects, e.g. 100- 10000. In this case, if you can compile a database of all your prospects, it may be more economical to communicate with them directly.  Your business is repeat by nature, your product requires regular replacement, service or replenishment, or you sell complementary products. When you have customer details on the database, you can contact them at the right time with the right offer and gain extra sales for a very low cost to your business.  Your sales cycle is three months or longer. Prospects will forget about you, if you will be out of contact for 90 days or longer, so you need to remind them that you are there. Database marketing is a targeted, cost-effective means of doing so. 3 Database Marketing – Advantage @somidhdas
  4. 4.  The costs in Database Marketing include:  Creating and maintaining the database  Creating sales and marketing collateral  Cost of delivering the messages – via Email, Telemarketing, Online Advertising, etc.  There are Three main ways to reducing Cost of Data:  Using Email instead of Postage- Although emailing costs are low, people tend to ignore, delete and block commercial emails, unless it comes from somebody they already know. With that in mind, good results could be achieved by emailing a new offer to a database consisting of only your existing customers and strong prospects.  Using Social Media - You can drive more traffic to company website, capture those visitors as lead, nurture the leads into relationship and covert those leads as customers.  Improving Conversion Rate - Conversion rates will improve with repeated emails, dedicated follow-up, and continual refining of your offers and a process supported by appropriate material (newsletter, telemarketing scripts, etc.). For the reason, firstly, you will learn more about your prospects as you collect feedback, and therefore your subsequent messages become targeted. Secondly, your prospects grow to know your business; they gain a better understanding about what you have to offer. 4 Economics of Database Marketing @somidhdas
  5. 5.  Key Factors Determining Success  Quality of the database - To select good prospects for your database, look at your best customers (past and present) and profile your existing customer database based on following – • What differentiates our products or services from those offered by our competitors? • How do our products or services create value for our customers? • How do our prospects make buying decisions?  Quality of information and offers - Describe your product or service in detail through additional photos / features of your product (Whitepaper), providing technical descriptions (eBook), or through giving your expert advice or assessment of prospect’s requirements. Whatever your promotional material is, it should be structured in such a way that each paragraph is relevant to, and attracts the reader to act – whether that be completing the survey, or picking up the telephone.  Systematic Approach - Successful database marketing typically consists of a systematic process of contacting your customers and prospects using specifically targeted communications. This process of contacts should direct your customer or prospect through the steps required to arrive at the decision to purchase your product or service. Each supplemental interaction you have with your prospect should provide you with additional information on the customer, and enable you to focus your efforts on finding more of those most likely to purchase, or to unearth ways to move them forward through your sales cycle. 5 Database Marketing – Key Factors @somidhdas
  6. 6.  Where to get the Database?  In-house Lists - Start with in-house database of previous clients and prospects. Where possible, record details of people who contacted you with enquiries, or those who have purchased and inform them you will be keeping in touch with them. This can be the cheapest and generally the best source for obtaining high quality prospect information for your marketing database.  External Lists - Professional list providers either sell existing lists, or research and create lists based on specifically requested target market criteria. The lists are typically contained company name, website, contact name, title, email, phone number, geographic location, and industry- specific categories. Purchased lists typically carry an accuracy level of 95% on contact information and 90% on email deliverability for the period of 30 days (from the date of delivery) .  Website Visitors - Web site is also provides an excellent opportunity to capture information. Offer a subscription to a newsletter, offering valuable material to download in exchange of submitting a form, provides a faster and easier way to collect prospect data. Ask a few targeted questions relevant to your business in the form also helps to create customer profile. 6 Database Marketing – Data Source @somidhdas
  7. 7.  Buyer Persona is a detailed description of an actual type of buyer who is involved in decision to purchase the kinds of products and services you provide. A complete buyer persona should contain the following components:  Company Information: The employee and revenue size of the buyer’s organization, What they sell, Who they sell to  Type of Business: The type of business the buyer works for  Job Title / Function: The buyer's position in the organization  Buying Role: The role the buyer plays in the purchasing decision process  Objectives / Responsibilities: The business objectives and job responsibilities of the buyer  Major Issues / Concerns: This is the heart of the buyer persona. If you can identify what issues and problems are keeping your potential buyers Conscious, you can create compelling marketing content.  Personal Attributes: These include Age, Gender, Education Level, and Compensation Level of your buyer. Obviously, ranges will be used for most of these attributes.  Implicit Profiling: Buyer’s interests based on where they are clicking on your website. You will have the data points that will help you to form the database for a specialized nurture. 7 Database Marketing – Buyer Persona @somidhdas
  8. 8.  Frequency of Contact  How often do you need to contact prospects? To ensure that your target market remembers who you are, you should contact them at least once every 90 days. There is nothing wrong with staying in touch more often, providing your message is interesting and valuable to your audience. This communication is the point at which your marketing activity may connect with your sales cycle.  Can you get customers annoyed by contacting them too often? Maybe, but prospects are more tolerant to frequency when your message is relevant. For example, your Internet domain registrar started contacting you about 1 month before our domain registration was due for renewal. They sent you numerous emails, two faxes and one letter. Result – you have renewed your registration with them and no, you weren’t annoyed.  Role of Database Marketer  Analyse your existing customer base and understand what is common between the best customers  Accumulate a large database of well-qualified prospects  Stay in touch with them at least once every 90 days  Send custom-made communications relevant to the prospects  Follow-up persistently  Collect feedback from the prospects and adjust your marketing accordingly 8 Contact Frequency & Role of Database Marketer @somidhdas
  9. 9. Thank You Somidh Das in.linkedin.com/in/somidh I @somidhdas Email: somidh@hotmail.com I somidh.das@gmail.com

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