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All You Need to Know About Database Marketing

We are in a digital age where a large amount of information is widely available to the business world using computer and internet technology. The digital revolution has indeed ushered in the beginning of the information era. In a fast-transforming digital world where data holds the key, database marketing is being leveraged to the fullest in delivering personalized, relevant, and effective marketing messages to customers. In this article, we will learn more about database marketing, its importance, and how to go about it. So, let’s get started!

What is Database Marketing?

As information gains momentum, data is being frequently referred to as the new oil. This can be explained in simple words by drawing parallels between oil and data – just like how crude oil needs to be refined before using, raw data also needs to be gathered completely, accurately, and refined to finally become relevant and usable.

Database Marketing in simple words – is a type of marketing that helps businesses reach their target audience efficiently along with optimizing the ROI on their marketing investments.  For this purpose, it uses aggregated and mined consumer data that’s based on their demographic, psychographic, and behavioral patterns.

The sole aim of any marketing campaign is to promote a product or service. Emails, online or outdoor advertisements, promotional letters, newspapers, SMS messaging, websites, catalog distribution are some examples of direct marketing strategies. Database Marketing is also a type of direct marketing. However, unlike direct marketing that uses any addressable medium as its mode of communication, Database Marketing uses databases of customers or prospects to generate personalized communications. The databases used in Database Marketing are also commonly known as email lists or phone lists depending on the type of marketing campaign it is used for – when used in SMS marketing campaigns, it’s called contact list; when used for Email Marketing campaigns, it’s called email list.

Database Marketing – Examples

Let’s take the example of Facebook to understand what database marketing is all about. Facebook has millions of account holders. Their main goal is to connect users with friends, family, and the world. But wondering what Facebook gains in return? Well, they simply share users’ data with their millions of advertisers for a price! The advantage of generating a database or acquiring from another source allows marketers to create personalized experiences for their users. Another database marketing example that can be cited is LinkedIn. Similarly, you may consider all the existing social media websites as being huge database marketing platforms.

Amazon, the e-commerce giant, is one more fine example of database marketing. Amazon effectively leverages and mines customer data, and closely keeps a track of what customers view, purchase, or place on their wish lists. All this enables it to cross-sell and up-sell to its buyers.

Today, we have a large number of companies that use newsletter subscriptions, or contest giveaways as a way to grow their marketing database for their in-house digital marketing needs! But, just like the social media platforms discussed above that generate databases to earn profits by selling them, there are also private players known as data providers who generate databases, email lists, or phone lists to sell in the business world.  These companies gather business information and collect data from various sources like corporate registry, public directories, digital wallets databases, Ministry of Corporate Affairs, third-party vendors, and also from various corporate events and exhibitions. is one of the most trusted and leading names in the world of data.

Why is Database Marketing Important?

Benefits of Database Marketing

Database Marketing involves paying attention to data analysis, and that’s what separates it from direct marketing. Database Marketing uses statistical techniques to derive customer behaviors helping to selectively target and communicate with them. The more the amount of customer data you have, the more are the chances of building an accurate Database Marketing campaign.

Using Database Marketing, marketers and advertisers can create relevant messages to their existing customers and prospects. And, therein lies the importance of Database Marketing. Executing it the right way can be an effective way to grow your business. Listed below are some of the benefits of Database Marketing that showcases its importance for any business.

  • Segmentation: Existing customers can be easily separated from new leads.
  • Prioritization: The most valuable customer accounts are easily identifiable.
  • Prediction: Enables to understand and visualize the behavior of customers and prospects.
  • Experimentation: Allows to experiment with the launch of new products, services, or ideas.
  • Customer Retention: Builds relationships that help to retain customers.
  • Feedback Generation: This option helps to understand the prospect or customer much better.
  • Promotion Facilitation: Useful for promoting a new launch.
  • Builds Credibility: Establishes thought leadership, builds credibility along with brand affinity creation.

Several Database Marketing tools enable you to personalize your messages. Further, using those tools, you can even track the performance of your campaigns – you can check engagement metrics like when your emails were opened by people from specific companies or when they visited your website. This goes a long way in prioritizing those accounts in their order of importance!

Summarizing the above benefits, Database Marketing is proving to be an important mode of marketing because it enables marketers to streamline their activities and information, helps to create targeted promotions, facilitates prediction of customer behavior and actions, makes it possible to track and measure the success of marketing campaigns, and finally, by saving a lot of money it increases the ROI.

How to Get Database for Marketing?

In this age of data and information, there are two types of databases used by digital marketers.

  • Consumer Databases – Used B2C companies that sell mainly to individual consumers, and
  • Business Databases – Used by B2B companies to sell to other businesses.

Business Databases are not restricted by the same privacy laws as consumer ones. Also, Business Marketing Databases are more advanced when compared to Business Consumer Databases.

Are you worried or looking to obtain or generate your B2B or B2C database? You have two options – either generate your database in-house or purchase a readily available one from a reputed data provider! Both options have their pros and cons. Let’s look at them.

Generating Database – Inhouse

With Online Support

With Online Support

It can make sense to generate an in-house marketing database if you already have a digital marketing team in place and you are also on a cost-cutting spree, or if you are a part of an industry whose contact data is public. But, there’s a flip side to this – your endless internet search for phone numbers and emails can be extremely time-consuming and there’s no guarantee of its accuracy. Further, you need to factor in the time and cost involved in cleansing and verifying before actually leveraging it.

Using Inbound Marketing Strategy

Inbound marketing

Another way to generate your in-house database is by using the inbound marketing method. It involves creating and publishing relevant content via blog posts, e-books, podcasts, or webinars. It enables you to gather contact details in your target area when visitors leave their comments or sign-up. Though this may appear to be a cost-effective method, there’s again a flip side to it! It requires an upfront investment – time and effort. And, this time-consuming process could prevent you from staying one step ahead of your competitor!

Purchasing Readily Available Database – Keep One Step Ahead of Your Competitors!

Purchasing Readily Available Database

Most start-ups or SMBs are in a hurry to increase their market reach and visibility. But, most often they do not have a lead generation process in place due to financial constraints. For them, the surest and safest way to grow their business is to obtain a readily available B2B or B2C database. It’s the most common, and arguably the easiest way to get a database for all your marketing needs!

Purchasing a marketing database can be tricky as many data providers promise big but fail to deliver. Therefore, it’s advisable to verify the reputation and credibility of your data provider before purchasing. Ensure that you get a customized and segmented database as per your target market needs – as a base rule it should mandatorily include direct-dial numbers and verified email addresses.

Effective Marketing is backed by robust databases. Target your audience, nurture leads, and close those deals with data that matters the most.

How Does Database Marketing Benefit Consumers?

Digital Marketing that’s executed over the internet involves advertising and other sales efforts that include Email marketing, Content Marketing, Social Media Marketing, Blogs, Videos, or Webinars. All these efforts benefit a business, but have you ever given a thought about its benefits to the customer or a prospect? Let’s check it out.

Keeps Consumers Updated: As the world changes constantly, newer trends or products emerge every day. Digital marketing that’s backed by good databases helps to keep consumers updated and stay in line with what is changing. Consumers can access content that’s relevant, engaging, and desired by them.

Builds Better Relationship: Consumers are bound to get critical about brands as they keep accessing more information about companies. All this leads them to give opinions about certain brands and opening the door to building a relationship with businesses that they trust! The more the consumers get familiar with your business, the more they begin to trust and start feeling comfortable in choosing your brand. This reflects when they sign-up to receive emails, or follow your social media page.

Consumer benefits

Enables Comparison Shopping Experience: Before the advent of online shopping, consumers went to different shops to compare the quality and price of a product they wished to buy. And, this involved lot of traveling to far-off locations making it a difficult task to visit all the stores. Database Marketing keeps your prospects updated about your launches, or products, or prices making it easy and convenient for your consumers to compare online and arrive at purchasing your products of service much quicker.

Convenience and Service: Time is precious, and as the world keeps moving at a fast pace, consumers expect easy and quick access to information that they need. Digital marketing that’s backed by robust databases enables consumers instant access to information and helps them make their purchase decisions quickly. The benefit of Database marketing lies in the quick and convenient service that they get when required.

Personalized Experience: No consumer likes their time to be wasted, and at the same time they want to be the valued customer! Database Marketing One induces a personalized marketing experience for each prospect or customer you target. It not only makes them feel valued but, it also helps them to get relevant and desired marketing material.

Case Study

Company: is a global online e-commerce company that continuously strives to create a positive impression on its customers, employees, and businesses. It has positively impacted the economy and communities in general.

Resolution: The client was an expansion mode and looking out to further increase its e-commerce market share. With time and resource constraints, it was compelled to search for suitable marketers to outsource its activities. analyzed and evaluated the existing set-up and supplemented its database capabilities with a call center by setting up a parallel processing unit at its premises.

Benefits: The accurate databases used by avoided bounce rates thus saving on time. The smart and trained telesales staff gave comprehensive product details most effectively that led to the closing of many deals that delighted the client. The client was able to bring down their analytics processing time. It enabled them to eliminate the extra time required to process new customers. All this led to an increased Return on Investment (ROI). The client was highly satisfied and resulted in the renewal of the partnership

Your One-Stop Data Solution – deals in robust and customized databases that are most suited to B2B as well as B2C businesses. We provide accurate, verified, and guideline-conforming databases that are regularly updated from getting decayed.

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