What Is Database Marketing?

Database Marketing ( Database Marketing ) is a process of establishing, maintaining, and using customer databases and other customer information in order to achieve the goals of contact, transaction, and customer relationship establishment. It is a marketing promotion method that has gradually risen and matured in the development of Internet and Database technologies. By collecting and accumulating a large amount of information from consumers, predicting how likely consumers are to buy a certain product after processing, and using this information to accurately locate the product, targeted marketing information is produced to persuade consumers to buy the product . ^[1]

Database marketing

(Marketing)

Database marketing is an enterprise that collects and accumulates member (user or consumer) information, analyzes and filters targeted email, text messages, phone calls, letters and other methods to carry out in-depth customer mining and relationship maintenance.

(L) Select and edit customer data. Collect and organize customer data and build a customer database. Collecting customer data should include customer personal information, transaction records and other information.

(2) Choose the right consumers. Targeted communication, increase feedback rate, increase sales, thereby reducing marketing costs.

(3) Provide the status of these consumers to companies using the marketing database and apply

1. Provide directly controlled and personalized services

2. Competition concealment

3 Diversified communication channels

4 Minimize costs and maximize results

5. High technology content

6. Variable digital integrated marketing ideas

There are several ways of operating database marketing. Depending on the industry in which the company is located, the product life cycle of the company, and the different stages of the company's business strategy and business strategy, a suitable operation method can be tailored for the company.

1. Basic operation mode: Regardless of any different situation of an enterprise, as long as it is an operation mode that an enterprise that wants to make a difference in the market should implement, that is, the basic operation mode. The basic operation method means that the enterprise builds its own database marketing operation platform, centrally manages the company's own existing data, acquires potential target customers through its own website, and conducts database marketing through a series of database marketing strategies to establish communication with target customers The interactive relationship between trust and loyalty creates long-term business value for the enterprise.

2. Data lease operation method: This operation method uses the data of potential target customers provided by a professional database marketing company to deliver brand information or product information advertisements to potential target customers to achieve the effect of precise marketing advertising. This mode of operation is also an important database marketing strategy that requires long-term execution. With data leasing as an operation method, companies can obtain accurate target customers' attention to the company's brand and products, and provide better ROI for market behaviors such as establishing customer relationships, sales lead mining, and brand promotion.

3 Data purchase operation method: This operation method is to obtain the data of potential target customers through a series of legal procedures. The company conducts database marketing through its own database marketing department. This operation method is generally used in accordance with the basic operation method. . The effectiveness of this approach depends to a large extent on two factors. The first is whether a database marketing platform suitable for the enterprise is established in the basic operation method. The second is whether the company has established a database marketing operation mechanism and whether it has the human resource requirements required for database marketing.

In short, the combination of the three database marketing methods is the most important database marketing strategy to success.

Generally speaking, database marketing generally goes through six basic processes of data collection, data storage, data processing, finding ideal consumers, using data, and improving data. ^[4]

Database marketing advantages

Find the exact target group

The analysis of user information in the database can more accurately find the corresponding target customers according to the company's own products and services, which is a more appropriate way of capital investment. Compared with other marketing methods of Guangsha.com, database marketing is more targeted.

Reduce input costs

For the general marketing method, because it has a wide distribution area, the ratio of target users contained in it is relatively low, so the benefit ratio of website marketing investment will be lower, and database marketing is from The data starts to find the target users who hope to be larger, so that the return on investment for marketing will be relatively high. Small companies with insufficient funds can effectively reduce investment by using database marketing.

Enhance user loyalty

Database marketing is a one-to-one marketing model that will give users a better impression of the company's products and services, and make the relationship between the company and the user closer, thereby enhancing the user's loyalty to the company.

Develop a new development strategy

The database information researched by database marketing is the user's first-hand information. Through the study of these contents, we can understand the different needs of different users, and adjust the development direction of enterprise products and services according to these needs, so that we can well grasp the needs of users and seek new development.

Covert marketing is safer

Participate in database marketing. This marketing model is relatively hidden. Unlike most traditional marketing and online marketing, everyone knows that it will not attract the attention of competitors and avoid malicious slander.

Reduce costs and improve marketing efficiency

Database marketing can enable companies to focus on fewer people, and the ultimate goal is to focus on the smallest consumer unit to the individual to achieve accurate positioning. Using the consumer database can accurately identify the target consumers of a certain product. Enterprises can avoid the use of expensive mass media and can use more economical promotional methods to reduce costs and enhance their competitiveness.

The secret weapon of business success

In traditional marketing, the use of mass media (newspapers, magazines, Internet, TV, etc.) to mass-promote new product listings or implement new promotional programs is easy to attract the attention of competitors, so that they can follow closely to launch countermeasures, which is bound to affect Expected effect. The use of database marketing can establish a close relationship with consumers and generally does not attract the attention of competitors and avoid open confrontation.

Database marketing disadvantages

legal risks

The risk of database marketing mainly comes from the legitimacy of the data source. Generally speaking, for B2B data, as long as it is purchased through formal channels (such as the Industry and Commerce Bureau, Taxation Bureau, and credit bureaus, etc.), it is all legal data, and there is basically no legal risk; and corporate and third-party database marketing As long as the B2C data collected by the company through its own marketing activities, as long as the customer authorizes the company to use its own information and then continue to send marketing information to itself, there is no legal risk; the key problem is that in the market Whether it is a black market or a gray market), there is a large amount of personal information collected through informal channels, and transactions are made at very low prices. In a market without strict legal regulations, the abuse of personal information and the low cost of obtaining personal information will inevitably lead to an industry with a very low barrier to entry and an unordered and self-regulating industry, and the relevant marketers will be actively and fearlessly active. participate. With the continuous promulgation and improvement of a series of laws and regulations on the protection of personal information in China, the industry of database marketing will further develop healthily. ^[5]