database marketing strategies

4 Must-Have Database Marketing Strategies for Marketers in 2019

There are many creative ways to implement a successful database marketing strategy. However, marketers need to identify database marketing solutions that fit their business model and provide a good return on investment. In an era where social media and other forms of advertising get the most attention, owning your own database could be the invisible weapon that can set you apart from your competition.

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Below are four database marketing strategies and techniques that can help a business boost their revenue in 2019.

1. Building an Internal Database

Building an internal database is a long-term strategy that can produce amazing results over time. Beyond just direct marketing objectives, building an internal customer database can raise the equity and valuation of a business, making it appealing to outside investors. It also reduces the cost of customer acquisition and makes businesses less reliant on expensive advertising sources.

So how can a business build an internal database?

One way is through pay-per-click (PPC) advertising. Savvy marketers bid on less expensive “top of funnel” search phrases on Google to boost their lead generation efforts, by getting people to sign up to their company’s email list. This strategy will not lead to conversions immediately, but it enables businesses to attract their target audience that demonstrate an intent to purchase.

Another way is through content marketing and search engine optimization (SEO). By ranking for keywords organically on search engines like Google, Bing, and YouTube, businesses can offer gated content, whereby contact information is exchanged for access to premium content.

2. Utilizing External Database Sources

More experienced marketers look past email sign-ups and build an online database of individuals through third-party data sources. For example, real estate giants like Zillow, Trulia and Realtor.com can tap into Google's search database to build their own online database of potential customers. This can be done by creating remarketing lists of individuals that search for keywords like "apartments in [city name]," "houses for rent in [city name]," "houses for sale in [city name]" and so on.

These high-intent audiences can then be remarketed to on Facebook, Twitter, Instagram and even on Google at a far cheaper cost. The key is to brainstorm potential keywords your audience uses to seek information and build an online database of high-intent audiences.

B2B Marketers also can leverage LinkedIn's database of business professionals to build their database. This can be done through LinkedIn Gen Forms or through Sponsored Content on LinkedIn’s newsfeed.

Facebook is also another external source that can be tapped into both build a database and market directly to potential customers. By leveraging Facebook customer data, businesses can build a list of messenger subscribers internally within Facebook or use advertising products like Facebook Lead ads to funnel interested prospects into a customer-relationship management (CRM) system.

With advances in technology, IP addresses of website visitors can be matched to a data provider’s database to capture email and postal information. This comes in handy for omnichannel marketing.

One tool currently providing this solution is Visitor ID Graph.

3. Customer Retention

Another effective database marketing strategy is marketing to existing customers to improve retention and loyalty. The cost of acquiring new customers is significantly higher than re-engaging existing customers. Vigilant teams ensure that their most profitable customers are always satisfied to reduce churn rates (i.e., people leaving your brand).

A key database marketing strategy here is to monitor RFM metrics.

database marketing strategies rfm metrics

RFM stands for Recency, Frequency and Monetary value (or Monetization).

Recency measures the last time a customer made a purchase (e.g., 10 days ago, 30 days ago etc). Recent purchasers are more likely to buy again, so re-engaging them with relevant offers (or helpful purchase-related content) is critical.

Frequency measures the number of purchases an individual in your database makes over a specific period of time (e.g., 1 transaction, 5 transactions, 15 transactions, etc.). As you can imagine, customers with high numbers of transactions deserve some type of loyalty promotion or gift.

Monetary value measures the total amount a customer has spent with a business (e.g., $20, $100, $3,000, etc.). Higher margin spenders are more likely to spend again. Low margin spenders, on the other hand, can be placed in upsell marketing campaigns.

In essence, understanding the activity in your customer database can help businesses tailor experiences, offers and messaging to specific individuals with the goal of improving retention and customer loyalty.

Also, increasing customer lifetime value through effective database marketing strategies enables businesses to spend more on advertising, thereby outperforming competitors with limited advertising budgets.

4. Segmentation and Personalization

Over time, marketers aim to nurture their marketing database to form a perceived one-on-one relationship with customers. This is only possible through personalization through segmentation. Personalization helps improve open rates, click-through rates, sales and customer lifetime value.

For example, eCommerce brands can send automated, personalized coupons to cart abandoners based on the user’s behavior on their website.

In this example, "cart abandoners" can be the target segment. Advanced segmentation can also be created consisting of cart abandoners of certain products, thereby creating an opportunity for a personalized coupon campaign about that specific product. Once this trigger campaign is set-up, any visitor that falls into that bucket (i.e., cart abandoners of "x" product), will automatically get a personalized email. This is personalization at scale.

How is this possible?

Say an online store has a customer email database of 250,000 people and gets an average of 700 visits each day from people within that database. By integrating the online store with personalization engines like Adobe Target, IBM Real-Time Personalization, or MailChimp for eCommerce, user behavior from the online store can be used to automatically trigger a personalized email to people in the database.

Therefore, if customer segments like "first-time buyers," "viewed product" or "cart abandoners" are created ahead of time, follow-up emails can be sent automatically to people who fit within certain segments.

For example, people who viewed products but did not add an item to their cart can receive an email about a special coupon or sale that can only be redeemed for a limited time. Cart abandoners can be sent a follow-up email to gather qualitative insights as to why they decided not to buy. These insights can then be used to improve conversion rates. Also, a customer service representative can be on standby to reach out to those customer segments to offer them solutions (like free shipping) to help close the sale.

In both instances, email open rates, click rates, coupon redemption and overall engagement with the brand will increase because the messaging is tailored to the customers’ interests in real-time.

Final Thoughts

There are many creative ways to implement a successful database marketing strategy to increase revenue. The key is finding which strategy and tools work best for your business and that are scalable as your business grows.

Contact us to learn how Stirista’s award-winning services can help fuel your company’s database marketing strategy.

About the author

Kelechi graduated from Tarrant County College in Fort Worth Texas in 2015 with a degree in Business Administration & Marketing. He joined Stirista as a Digital Marketing Specialist in 2017 bringing with him over 5 years of experience in website and landing page design, conversion rate optimization, website analytics, split-testing, creating, tracking, and optimization of various forms of paid advertising campaigns. Kelechi is responsible for Stirista’s internal marketing campaigns. Anything ranging from search engine optimization (SEO), website analytics, AdWords, social...


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