What is database marketing?
database marketing is a form of direct marketing that uses customer information contained in the company's databases to adapt to a specific group of customers. Companies use information about their customers or in some cases about their potential customers on the market or services market that is likely to be interesting for a particular customer. The information contained in the company's customer database may include basic information such as name and address, as well as demographic information such as household income, age, race, etc. It will also include products that the customer has bought from the company in the past.
Most companies collect information about their customers and store them in data warehouses. Data songs are simply computer files that contain this customer information and allow them to be sorted by different criteria. The information contained in the data warehouse may be segmented in different ways, which is valuableCentrals as trying to target specific types of customers. Data warehouses are sometimes called database warehouses.
by sorting this information and segmenting its customer base, the company practices the management of relationships with customers. Some companies will try to measure the effectiveness of customer relationships with customers by calculating the lifelong value of the customer. The lifelong value is an estimated of the current value of the company that a particular customer will bring during his / her life. Companies that use customer relationships and lifelong values analysis usually focus on providing excellent customer service to keep customers for a long time.
marketing communication generated by database marketing usually spreads in large quantities based on customer demography. For this reason, sometimes unsolicited mail, in the case of direct mail or spam, in the case of e -mailEat communication. Because these types of communication usually look for an answer from the consumer, they are also referred to as direct reaction communication.
database marketing is used by businesses that teach for consumers known as business consumer or marketing B2C, and business that sell other businesses known as business in business or B2B. Since business information is often more accessible than consumers information, companies that are involved in B2B marketing will often have larger data warehouses than B2C. For this reason, database marketing is sometimes perceived as more efficient in B2B space.