Digital marketing prides itself on constant evolution to meet the ever-changing needs of online marketing landscapes and mar-comm managers are quick to jump on trends. Database marketing, that is, direct marketing of products and services to potential and existing customer databases to generate leads that turn into sales is important. But why?
Database Marketing is Key to Growing Your Business
- Regular engagement increases inquiries and sales
- Nurturing programs empower customers to buy at their own pace
- Direct marketing can help optimize marketing dollars
As its name suggests, data is one of the key things that makes database marketing effective. Having a large amount of data about your target customers ultimately increases the efficiency of your business model. But the improper execution of your strategy could mean that you are wasting time and money on what could be one of your more viable sales channels.
Feeling lost? Check out our article on Marketing Made Easy for SMEs
Here’s Part 1 of our list of Database Marketing mistakes businesses make and how to avoid them.
6 Database Marketing Mistakes to Avoid – Part 1
1. Not Recognizing Your Audience as Your Biggest Asset
It’s 2018 and most marketers are still focusing on the ‘disruptive’ form of marketing and advertising to increase sales for their current product and service offerings through only a couple of revenue streams. They calculate ROI based on money spent versus money earned. They are paying thousands of dollars to other companies to disrupt their target customers’ real daily pursuits to try to convince them within 10-12 seconds why they should pay for a product or service.
Think about the brand of coffee you stock your pantry up with. Did you choose it because you saw an ad for it on Youtube, or because you’ve already developed a level of comfort with the taste and value of it over time?
Building a loyal audience is similar in that once you understand their needs and try to meet them or solve their problems, there is no limit to what they will reach into their pockets for from you, and they’ll keep coming back for more. The best way to build a loyal audience is by constantly pushing out content to them that they want to see. Which brings us to our next point;
2. Not Treating Your Content as Your Product
The production and distribution of content have become such a commodity that the value of top-quality original content has increased. And rightfully so, because why would your loyal customers settle for less?
Your content is your product and don’t let anyone tell you otherwise. By treating it as such, you meet your customers right where they are and right where you need them to be. Everything begins with needs and wants, and your content should be there when your customer comes looking. Instead of diverting attention, you want to capitalize on it. Instead of describing a thing, you should be telling a story.
We all want to sell things to people, but people are not interested in things — they’re interested in stories. Making connections between what’s meaningful to your customers and what is meaningful to your business is what will create an audience that leads to customers, and ultimately gives you one of the most powerful tools you can have for marketing — data.
3. Not Collecting Relevant Customer Data
For your database marketing strategy to work, you will need relevant, accurate and updated customer information. With this, you’ll be able to create customized content and offers that will help you retain current customers while acquiring new ones. So what happens when you miss out on relevant data or collect data that doesn’t help?
Well, you waste time and money.
Here’s a quick breakdown of the most common types of data you can collect and how each is useful:
- Personal Data – Names, contact numbers, emails, Instagram profiles, Facebook profiles, age, profession, and gender; all these will tell you a little about who your customers are and how you can reach them
- Behavioural Data – Spending habits, spending capacity, browsing habits, shopping habits, smartphone, TV and internet habits… all these will help you understand how better to engage your audience and which platforms to use.
- Transactional Data – Keeping score of what your customers buy, how often and when helps you better understand what products and services to offer them in future.
Sure, you won’t be able to fish for everything at once but keep extending the net and you’ll get what you need. Start collecting data with every point of interaction your customers make with your business. In addition to everything, use all of your data to model a brilliant and personal customer service strategy and you’ll start to see the numbers jump.
There’s more, but we’ve got some data crunching to do, so look out for Part 2 next week!