Phases involved in Database Marketing

Database marketing is a form of direct marketing in which databases of customers are used to generate targeted lists for direct marketing communications. These databases comprises of all the details of the customers, namely, their names, addresses, phone numbers, e-mails, purchase histories, information requests and any other related data. In other words, database marketing is a process of identifying, collecting and analysing relevant information about an organization’s customers. The data are procured from various internal and external sources such as email correspondence, sales information, promotional efforts and social media.

The aim of the database marketing is to utilize the information within the database to implement marketing strategies so that there is an increase in the organization’s profits. There are three main stages for effective database marketing.

• Data collection–The foremost stage involves collecting and gathering relevant data about prevailing and potential customers. It is also ensured that data is made available in such a way that it proves beneficial for the firm’s marketers in related activities.

• Transformation of data into knowledge– In this stage, analysing data is required so that the data useful for marketing and communications can be obtained. The data is fragmented in existing and potential customers so that objective and appropriate marketing message can be generated for both the sections of consumers.

• Development of business strategies – The strategy for the business is shaped in this stage utilizing knowledge and information, for instance, the communication system with customers is modified, the resources are allocated, prices and other related concerns are estimated.

There are various benefits associated with database marketing. It allows an entrepreneur to segment and target marketing endeavours in a cost-effective manner. Efficacious database marketing creates more sales by providing information that allows companies to identify and exploit new market opportunities. The quality level of communication with customers is increased as well. The organization is able to elevate its chances of customer retention by strengthening long lasting customer relationships. Datamation International is a global IT firm which renders database marketing services to various firms.