benefits of database marketing

9 Benefits of Database Marketing That Will Get You Excited

There is nothing more valuable to a business than happy, loyal customers. Database marketing (also known as customer relationship management) is key to keeping customers happy and having them continue to choose your brand over competitors.

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Here are 9 benefits of implementing a solid database marketing strategy:

(use links below to go directly to a specific benefit)

​1. Personalizing Through Customer Segmentation

The end goal of any database marketing initiative is to deliver personalized and relevant messages to each customer. A good customer database is grouped according to segments geared to a specific purpose or shared interest; allowing for relevant content people care about to be shared with them without coming across as “spammy.”

For example: Segment between potential customers (new leads) and new customers. Doing so allows you to distinguish between sending acquisition emails and upsell or cross-selling emails.

Also arrange the database by high value accounts. This is done by adding firmographic data (such as company size and estimated annual revenue) to your contact database. This will enable easy identification of the biggest or most potentially lucrative opportunities and create personalized campaigns just for them. This strategy is also referred to as account-based marketing.

2. Increasing Revenue Through Trust

People buy from businesses they know, like and trust.

Now more than ever, people want to feel understood and connected with the brands they care about. A great benefit of database marketing is that it gives you a direct line of communication with your target customers. By making your company easily accessible, your brand will win their hearts (and wallets)!

According to a Facebook research, 53 percent of people said they were more likely to shop with a business they can message.

A great way to do this is through Facebook messenger marketing. This marketing channel is on fire now! 

Over 1.3 billion people use Messenger every month and 10 billion messages are exchanged between people and businesses every month.

With Facebook messenger, consumers have a direct, one-to-one communication channel with the brands they love. Compared to email marketing where messages can seem generalized, messenger marketing gives the feel of a one-on-one, personalized conversation. As an added benefit, marketers are seeing over 80 to 90 percent open rates with messenger broadcasts. By building a database of messenger subscribers, small businesses are beginning compete with big brands and forming personal relationships with customers.

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3. It’s a Great Source for Customer Feedback!

I recently received this personalized email from Facebook. Notice they referred to me by name and finished their survey request with "for you".

facebook survey

Not only was this feedback email personalized and benefit-driven, it was also segmented to be received by Facebook advertisers only (of which I am a part).

As Facebook has shown, the best way to improve products is to directly ask customers what they want.

A marketing database (in Facebook's case, a database of their advertisers) comes in handy when looking to gather insights about the quality of a company’s products, apps or services. People want to engage in conversations with brands now more than ever. Leverage this trend and create marketing campaigns geared towards gathering feedback directly from customers.

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4. Helps Create Relevant Communications

A functional marketing database is arranged according to demographic segments, which include name, sex and age. A good database marketing strategy ensures that every communication is sent to the right person or audience.

Sending promotional offers to the wrong audience is not only a waste of resources, but can also hurt your brand. An example would be sending a female product to a male audience. This can lead to people unsubscribing from your list and associating your company with spammers.

On the other hand, imagine you are an online retail store that specializes in baby products. A marketing database of new moms will ensure your message is both personalized and relevant.

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5. Retargeting Website Visitors

A marketing database isn’t limited to email, phone number and postal address. Consider building a database of online visitors.

According to Adroll, “Two percent of shoppers convert on the first visit to an online store. Retargeting brings back the other 98 percent”.

This is done by creating a list of those who visit your site by placing anonymous retargeting "cookies" in their browsers. In other words, build a database for future marketing!

how retargeting works

For example, consider building an online database of people who visited the “cart” page but did not complete their order. For non-eCommerce businesses, this would be people who visited the pricing page but did not sign up.

Also create a list of people who have reached the “thank you” page (buyers). This will allow for the exclusion of these people so that the target audience remains those who did not complete their purchases. In the future, up-sell promotion campaigns can be targeted to past buyers.

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6. Helps Build Authority and Brand Affinity

The more helpful content is shared with an audience, the more your company will be seen as a trusted source. This keeps the brand top-of-mind and promotes brand affinity.
Content can be shared via email newsletter or by remarketing to online subscribers with helpful content rather promotional ads.

7. Leads to an Improved User Experience

The benefits of database marketing doesn’t only revolve around sending out marketing messages and content through emails and online ads. The data online visitors leave behind as they browse the company’s website also can be a good source of information.

For example, a customer’s online activity on your site can be collected and analyzed to improve their web experience. By collecting users’ data (with their permission, of course), you can see where they are experiencing difficulty on your company’s website and make improvements. This will lead to an improved online experience which can lead to an increase in conversions.

For more on this topic, see our post: 7 Actionable Data-Driven Marketing Examples You Can Apply Now.

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8. Great for Testing New Ideas

The Facebook engineering team is a perfect example of this. They roll out new features and ideas to a small segment of their audience before launching it to everyone else. If they get some constructive feedback, they go back and make changes until they create a better product or service.

Here is what a Facebook engineer had to say:

“To keep improving, we must constantly test different versions of Facebook with real people to even have a chance at creating the best possible experience. Every day, we run hundreds of tests, most of which are rolled out to a random sample of people to test their impact.”

The example above highlights just how beneficial building or owning a marketing database can be.

9. You Own Your Distribution Channel

In marketing, a distribution channel is simply the network used to get products to customers. For example, television is a distribution channel, as is radio, YouTube, Google and Facebook.

Large offline retail stores understands the importance of distribution channels. Starbucks has over 27,000 stores worldwide. Walmart has over 11,000 stores and McDonalds has over 37,000 restaurants. Their products aren’t necessarily the core of their businesses, their distribution channel is. This is why you see them opening new stores everyday.

In the online marketing world, your customer database is your distribution channel. A distribution channel can therefore be classified as an asset. The question is, are you building one? Thanks to the internet, a single person or a small business can build a global virtual distribution channel with a laptop.

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Final Thoughts

Through database marketing, anyone can build goodwill to a large audience by helping them solve their everyday problems. Once goodwill is built, you then have the capability to promote your products or services to an audience with just a push of a button.

Contact us to learn how Stirista’s data, digital advertising and email campaigns can help fuel your company’s database marketing strategy.

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About the author

Stirista began as an ambitious project from an apartment in San Francisco. But as office space expanded, so did our client base. After a few short years, we have worked with the largest healthcare insurance provider in the world, the biggest telecommunication company in the US, and some of the most prestigious universities in the country. We are on the preferred vendor list for a handful of Fortune 500 companies, with three of the ten largest companies in the world turning to us for...


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