5 Examples of Database Marketing for Customer Acquisition
An increasing amount of data is becoming available every day that can help businesses acquire customers. In this article, we’ll cover various examples of database marketing that can be used by businesses to effectively acquire customers at a lower cost.
What is Database Marketing and Why is it Important?
Database marketing involves the collection of consumer data in order to understand their needs and provide solutions through personalized communication.
For example, a dental practice can have a database to send personalized and relevant messages when it comes time for its patients to schedule their next cleaning. This level of personalization and segmentation is one of many benefits of database marketing.
Implementing a database marketing strategy is also important because it helps businesses keep track of active and inactive contacts. Inactive contacts can either be reactivated or deleted to make room for active ones.
Below are five effective database marketing examples that can help you connect with your customers and boost revenue.
1. Facebook Messenger Marketing
A common misconception is that email marketing is the only way to communicate to customers online. Due to new marketing channels, this isn’t the case anymore.
Customer data isn’t just email addresses. Thanks to companies like Facebook, you can build a targeted customer database within their Messenger app.
Tools like ManyChat, Chatfuel and Botsify help marketers build AI-powered chatbots inside Messenger to build a subscriber base.
Messenger marketing isn’t slowing down any time soon. In fact, messaging apps are more popular than social media networks.
Compared to email subscriptions, Messenger subscribers are attained whenever a person sends a message to a Facebook fan page. This makes growing a marketing database easy since the individual doesn’t need to enter their email address on a form. Their accurate email address already exists on Facebook and by interacting with a brand, they give their permission to be marketed to by the brand.
These chatbot apps function like a regular email automation platform. Follow-up sequence and Messenger broadcasts can be sent to everyone on the subscriber lists. People can be segmented based on how they interact with buttons within Messenger. As a bonus, open rates are extremely high compared to email since users are more likely to check their Facebook notifications than opening an email.
2. Personalized Email Communication
A good example of database marketing is when a business personalizes email communication to customers based on past purchase behaviors or demographic attributes, thereby increasing their chances of buying more products in the future.
Take, for instance, a clothing store that sells to both men and women. Increased sales can be generated by segmenting their email list by gender. This way, relevant messages about products can be sent to specific audiences.
According to MailChimp, campaigns with segmented email marketing lists receive 14.31% higher open rates than non-segmented campaigns.
There are several database marketing tools that can be used for sending personalized emails. Some of the popular ones include MailChimp, HubSpot, Eloqua, Adestra and Marketo.
3. Retargeting Ad Campaigns
Savvy marketers understand the importance of online consumer data. An online marketing database can be built and maintained using visitor interaction with a website, thereby creating a “remarketing list.” Think of it as a user bookmarking a website but in reverse. Companies and brands can bookmark (or remember) their website visitors by placing a “cookie” on the computer or mobile device used to peruse the site.
Advanced technology has made retargeting a powerful tool for marketers. For example, an eCommerce website can send emails based on specific actions returning customers take on their website. Likewise, banner ads with discount offers can be set up to target individuals that visit certain pages in an online store.
A solid strategy to consider would be to build an online database of people that visit an eCommerce’s “Product,” “Add to Cart” and “Checkout” pages without completing their transactions. Depending on the number of visitors a particular website receives, each audience segment could amount to several thousand or perhaps millions of people who have clearly shown purchasing intent. Failure to remarket to this audience would clearly be a missed opportunity.
4. Freemium Models/Free Trials
Freemium models and free trial offers also have been a proven way to grow a database of potential customers and market to them. Good examples include free messaging apps, social media networks, free marketing tools and free gaming apps with in-app purchases or ads.
SaaS companies offer seven, 14, 30 or sometimes even 60-day free trials to access powerful business tools without asking users to enter a credit card. That is a great value exchange and a sure-fire way to grow a targeted prospect database. After interested prospects are generated and are inside the product, an upgrade option for more advanced (and often important) features can be made available. This is a powerful option to turn a marketing database into paying customers.
5. Account-Based Marketing (ABM)
One of the benefits of a well segmented marketing database is that it helps support ABM initiatives. Marketo defines account-based marketing as an alternative B2B strategy that concentrates sales and marketing resources on target accounts. The goal is to deploy personalized campaigns that resonate with each account.
In other words, rather than try to appeal to a broad audience to find qualified prospects, with ABM, you identify the biggest opportunities at the beginning and go after those companies.
With this strategy, you start by segmenting your database according to companies with the largest annual revenue and employee size. By partnering with a data provider (like Stirista), you can append your database with firmographic information, such as job titles, annual revenue and employee size.
The next step is to launch email, direct mail and display ad campaigns to those high-valued accounts with well researched, company specific proposals that demonstrate your value to their decision makers.
There are many ways a database can be leveraged to boost revenue. Hopefully, these five examples give you ideas to consider implementing within your organization.
Contact us to learn how Stirista’s award-winning services can help fuel your company’s database marketing strategy.