At Martin & Jones Marketing, we always get slightly excited when a new client joins us that already has a database built up.
Having a database of potential and existing customers really is key to good marketing. In this article, we are going to discuss why you should prioritise building a database for your business and how you can use it within your marketing strategy.
What is a database?
Put simply, a database is a list of contacts that your business wants to keep in touch with. These contacts may consist of past, current or potential customers, other businesses, suppliers and anyone else that has shown interest in your industry.
What is database marketing?
Database marketing is a form of marketing that involved collecting customer (both existing and potential) and using this data to create a personalised experience for each user. Database marketing uses the foundation of traditional direct marketing, but takes it a step further by trying to understand how customers want to be marketed to.
Database marketing is also often referred to as customer relationship management as you have to understand and manage your customer database.
A marketing database contains data elements such as name, email, phone number, job title, company revenue, purchase history, lifetime value, website cookies and so on.
What are the benefits of database marketing?
The main benefit and goal of database marketing is to use data to create relevant messages and meaningful experiences with your audience. However, there is a huge list of benefits including:
- Helping customer segmentation by separating existing customers from new leads.
- Prioritising your most valuable accounts.
- Giving you the ability to predict customer behaviour.
- Allowing you to test new ideas and products.
- Can be used to gather feedback and better understand your customers’ needs.
- Staying relevant and in the mind’s of your customers.
- Increasing customer retention by building relationships.
- Establishing thought leadership credibility and builds brand affinity.
- Can be used for future promotional campaigns.
How to build a marketing database
Whether you are starting your database from scratch, or looking to build on your contacts, here are some top tips for growing your data:
- Launch exclusive content that can only be accessed by inputting contact details and agreeing to be added to the marketing database.
- Offer exclusive discounts to those who have signed up.
- Collect customer information during checkout (for e-commerce businesses).
- Acquire a business contact database of your idea prospects from a data provider.
- Collect website visitor data via online cookies.
- Add newsletter sign up forms to your website and social media accounts.
What’s the best way to store your database?
You can store your database in any way that suits your business, as long as it’s compliant with current data protection legislation. You can choose between a password encrypted spreadsheet, or using marketing software such as HubSpot or Mailchimp. These software’s are designed to make your database marketing easier, as you can send out eshots, campaigns and landing pages all through the same platform.
It is extremely important to ensure your database is kept in line with the GDPR legislation. You must only keep an individual’s contact details with their permission. All data must be kept securely, and only for a necessary amount of time. Read more about GDPR legislation here.
Are you struggling to find the direction that you want to go with your marketing strategy? Book a Power Hour with Ruth to receive tips and advice on the best marketing practices for your business.