What is Database Marketing?



It is the art of assembling and storing various pieces of information pertaining to your customers and prospective customers. Typically, the information gathered is placed into a software program that uses databases and is stored on your computer's hard drive. Once the information is assembled, it is then used in the advertising and marketing campaigns of your products and services to these people in your database. Database marketing is thus a great way to save both money and time, because it allows you to focus your promotional campaigns to your targeted audience.

What Information Should You Be Collecting?

This will vary from one business to the next. It is really dependent upon the type of services and products you sell. For example, if you only charge $2.00 for your products, it wouldn't be necessary to gather any yearly income information from your customers. Furthermore, if you sell a service, such as hosting, it wouldn't be necessary to gather any type of information in regards to the books they have read or want to read. The basics you need to worry about would be the purchase history and the personal contact information. If you need other information at a later time, that would be up to you to decide what is necessary and beneficial to your business.

It is important to understand that you cannot ask for nor store any information that is sensitive. If you are unsure as to what information is sensitive, you should inquire about the laws in the area in which you live.

How Do You Get The Information Online?

The hardest part of gathering information is getting your customers or potential customers to trust you with that information. Many marketers find that the easiest way to go about getting this information is to offer a freebie in return for it, with no obligation to purchase anything. For example, if you offer an ezine or a report, ask your customers to take a survey to receive their free item first. You could also offer all visitors a free ebook, if they of course, fill out the questionnaire offered online.

If you offer a free contest, request this information up front. As with many areas of life, if you give you will get.

Using software or tools can help you keep track and coordinate your databases easily. If you don't want to use software, you could consider Excel spreadsheet or Microsoft Access to keep track of this information. If you need to gather information or create forms, some tools you might consider include Aweber or 1shopping cart.

How Can You Use Your Database?

Here are some tips for using your database to benefit your business:

1. Request the spending habits of your customers or keep track of it. This will help you improve on the overall design of your website, as well as aid in writing advertising campaigns to become more persuasive and targeted for your shoppers.

2. Find out (ask in your surveys) what your customers dislike and like about your website and business. This will be helpful in making the necessary changes or focusing on the positives.

3. Are your customers making good use of your products and services? Are they getting the help they need when they reach out to you? Ask. This can help you improve in the areas of your customer service.

4. What do your customers want or need in regards to your products or services? This can help in testing ideas, getting new products, or adding new services.

5. Build customer loyalty; find out what your customers think about your current services or products, and how you can improve.

6. Ask your customers what features or benefits they best like about your services or products? This information can be useful in sending cards electronically on birthdays or holidays as you announce new features and benefits, and then explain them in announcement messages.

In summary, the benefits of database marketing are virtually endless. Collecting information can only help you improve on your business while allowing the internet to be your guide. Give it a try and see if your profits skyrocket when you use database marketing to your advantage.