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What is the skill required? Database Marketing. You already know the basics. You already know how it works because you have mastered cold-calling. You are a legend in newsletter click-through rates. Your social media influencer list is filled with viral sensations.
Direct Marketing is what you are familiar with. You know how to get a genuine and lasting commitment, regardless of the medium. Personalization is key.
Database Marketing allows you to personalize your work. Marketers can use this skill to become power players in Big Data.
Quick History of Database Marketing
Database Marketing, as we know it today, began with the evolution of computers during the 1980s. Robert Kestnbaum has been credited with being one of the first pioneers in customer-centered electronic databases. Kestnbaum, who founded his management consulting company in 1967 and became well-known for his ability to develop strategies that included intensive and imaginative customer data analyses, began his firm in 1967.
Kestnbaum, along with Robert Shaw, a key contributor to the worlds of marketing automation efficiency and measurement, went on to develop Database Marketing. Both are credited for creating the automation of telephone and field sales channels, contact strategy, campaign management, and marketing resource management.
In the 1990s, their work led to the development of CRM, a revolutionary marketing technology. The amount of data available to marketers increased dramatically when the internet was introduced. Marketers could update data more often and use data to understand and prioritize customer needs.
Database Marketing Today
Database Marketing has grown to be a multi-billion dollar industry. Data systems that are comprehensive and interrelated can be used across multiple applications to provide a quick and efficient way of accessing customer information. You can learn almost anything about your customers, from purchasing habits to financial status and cultural demographics to lifestyle preferences and choices. All you need is a CRM. You thought so.
Here is a typical example of digital marketing. A customer scrolls through social media. A customer is scrolling through social media when they come across a notification that a friend has become a fan of the business page. Like their friend, the customer clicks on the page of the business because they like the product offered by this business. The CRM social integration of the business is combing their social media activity and interactions with this new customer while tracking how they interact with the page.
The customer shows interest in the company and follows/likes the page but doesn’t buy any products. Next time they log in to their social media accounts, they will be greeted by an advertisement announcing free shipping for a particular product. The CRM has identified that the new customer is a bargain-hunter. The new customer clicks on the ad and makes a purchase. This is where real Database Marketing starts.
Database Marketing: The Power of Database Marketing
The business now has access to contact information for new customers and can engage them through digital marketing channels, learning more about the customer’s habits and needs. This will allow the business to further customize its marketing strategy. It was not easy to get there, and the hard work had just begun. It is inaccurate to claim that CRMs will be the key to success.
The CRM is not the first thing to be implemented. It is not easy to build a database. Marketers are sometimes fortunate enough to work with clients who have already built a database using information gathered from their sales. In today’s market, merely having a database is not enough. It must be robust and up-to-date.
According to the Gartner CMO Spend Survey, marketing technology accounts for 33% of an average marketing budget. They reported that of that budget, 28% goes towards infrastructure for marketing software.
Power doesn’t always come easily
Marketers are equally committed to customer acquisition and customer maintenance. You must survey the customer whether you ask new or similar questions. Marketers must help clients understand that their work cannot begin until the database is updated.
Long-term, the trick is to keep your data up-to-date. In today’s fast-paced world, everything from a change in relationship status on Facebook to changing your home address is possible. Many marketing companies with the resources outsource data management to software developers and vendors. Either that, or you can beef up your internal IT team by adding experts who can use the data.
Much is going on to standardize platforms, which will become the basis of marketing systems. Many of these foundational platforms are opening their APIs to allow other companies to develop innovative, specialized technology that can be plugged into their environments,” said Scott Brinker of Kapost.
Collect information
Marketers should always be aware of industry standards and market research to determine the most useful and impactful data to collect from their customers. Each marketer is unique in their knowledge of customers. However, when building a database, here are some basic information to include: Name, Job Title, Age, Race, Gender, and Likes and Dislikes. Marital Status. Number of children. Postal Address. Email Address. Phone Number. Preferred Contact Method. Source of Lead. Source of Sale. Payment History.
Analyze Data
After determining that your customer database is accurate and robust, the next step is to analyze the data. This is a scary task for many marketers. You will find that agencies and companies are both looking for database analysts. These analysts evaluate marketing campaigns and tactics based on data insights. They work closely with the client and marketing team to evaluate customer and group characteristics such as lifetime value and acquisition costs, attrition, and retention.
They are adept at analyzing and recognizing patterns in customer behavior and then converting that data into reports on strategy and predictive models. They are systematic and investigative thinkers who have experience in programming and know how to use database languages like SQL.
Use this data to craft your marketing strategy
Most marketers find the next step the most fun, using data to tell beautiful stories that will attract customers. Speak in their language using various cultural nods, colloquialisms, and insider jargon. Imagery that reflects the lifestyle and interests of your target audience. Searching through catalogs of products and services to find the perfect match. Think five steps ahead to add-ons, discounts, and follow-ups. Finally, work all the finesse, creativity, and data into the CRM.
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