Database marketing - promotional activities based on databases

Service Business

Every marketing specialist wants to know as much as possible about their potential customers. Successive, non-automated collection of such knowledge can be very time-consuming and, as a result, not very effective. For many years, databases have been an extremely important auxiliary tool in marketing activities. Thanks to them, you can easily determine the target group of promotional campaigns. Find out what database marketing is and how to use it in promotion!

Database marketing - how does it work?

Database marketing, called in Polish database marketing or simply database marketing, is a type of activity supporting marketing campaigns by collecting and analyzing data about customers or potential customers. Extensive databases are created, which contain this personal data - personal data, age, gender, shopping preferences, interests, professional and economic status, approximate place of residence, etc. Database marketing allows you to profile campaigns to a specific group of recipients with specific characteristics.

Creating the most personalized advertising message is the basic goal for which databases are created. Database marketing uses specific customer models that are created through a thorough analysis of the materials collected in the database. Thus, a "model client" is created, to which the marketing activities are adjusted.

Application of database marketing

One of the most basic applications of database marketing is the creation of mailing lists - information for such databases is obtained by companies, among others from subscribing to the newsletter, sales and contact forms, etc. On the basis of the collected data, groups of recipients are profiled. Specially tailored e-mail messages containing a specific, personalized offer are sent to specific groups. In the case of e-mail marketing, database analysis is very important - you may be considered a spammer if your e-mails do not attract more attention to recipients. What's more, there is also the fact that e-mail marketing is permissive marketing - the customer must agree to send e-mails!

Thanks to the use of databases, it is possible to effectively conduct both promotional / advertising campaigns and information campaigns. Direct marketing - and this is what database marketing is - also allows you to narrow the company-customer relationship and thus is effective in building brand awareness or customer trust. All kinds of special, dedicated offers or loyalty programs that you can run using the database are perfect for this.

Database marketing - what is a data warehouse?

"Hand-held" data collection can be cumbersome and time-consuming at times. Therefore, you can use the data collected in the resources of existing data warehouses, which are run by specialized companies or institutions. What is a data warehouse? Let's quote the definition of the American computer scientist Bill Imnon:

"A data warehouse is a collection of integrated, non-volatile, targeted databases used in decision support systems."

So you can access the targeted database you are interested in - e.g. customers of local restaurants, people who bought motorbikes in the last month, etc. Extensive databases have numerous and updated information - they are used by many companies, especially beginners, who have not yet created their own , a wide database of customers.

Big data marketing - the evolution of database marketing?

It can be assumed that database marketing has undergone a certain evolution - today it is often referred to as big data marketing. What is this? Well, big data, in the opinion of McKinsey & Company, is a collection of data the size of which exceeds the capacity of storage and management by classic tools designed for this purpose. In practice, these are gigantic databases that change dynamically in real time. These are much more extensive databases than those you deal with in the case of, for example, e-mail marketing.

How to use big data in your company? Generally speaking - all databases, smaller or larger, are primarily aimed at reaching a specific customer as accurately as possible. Big data simply creates more opportunities - thanks to the use of this type of data, you can find out, among others about customer behavior on websites, in social media, collect data as in the case of classic database marketing and observe their change in almost real time.

Database marketing is constantly used in promotional activities - only the amount of information you can get about potential or existing customers increases. This brings many benefits, primarily related to the optimization of the advertising message to individual preferences or needs.