Last week we talked about Database Marketing mistakes and how to avoid them in order to grow your business. If you haven’t already, you can get up to speed here. Getting your marketing strategies right is crucial in driving growth for your business and without a proper plan for your database marketing strategy, you’ll be missing out on collecting valuable data and increasing customer retention.
Let’s jump right in with Part 2 of our list of Database Marketing mistakes businesses make and how to avoid them.
6 Database Marketing Mistakes to Avoid – Part 2
4. Not Focusing on Relationship Marketing
Here’s one that’s commonly overlooked. Relationship Marketing is a subset of Customer Relationship Management (CRM) and of database marketing campaigns which focus on quality customer service in order to maintain long-term customer retention. You’ve already collected the data on your customers’ behaviour, so you should use it to create a customer service experience that is meaningful for them, and in turn, meaningful for you.
Learning how your customers respond to different phrases is one example of how you can improve your customer service. By using keywords or phrases, much like how you use them in your content strategy, can enhance your customers’ experience exponentially.
Of course, breaking down your target market into groups, or segments, is key in understanding the different types of customers you will be dealing with and how they would act and react to your business offerings and customer service. On that note…
5. Not Segmenting Your Target Market
Market segmentation is the only way you can really break down your target market to fully understand their behaviour, and this is the only way you can create efficient database marketing strategies with the results that you want. You can segment your target customers by buying habits, personal interests, demographics, education levels, income brackets, and even what pages they view on a website or blog. Having a rich database gives you room to target an individual customer or a whole segment based on relevant criteria.
6. Not Utilizing CRM and Database Tools
CRM and database tools are available to help you streamline your processes and manage your strategies more efficiently. Choose intuitive tools that can automatically turn leads into conversions and eventually increase customer retention, and you’ll be winning. Here’s how:
- Grow new leads from your current customer base based on the data you collect on their purchasing behaviour. You can also use your current database to create a target lookalike audience using Facebook’s updated ad-targeting tool. This will help you generate new leads outside of your current database, in tandem.
- By tracking links, you’ll be able to observe the behaviour of visitors to your site and create a better way to catch, convert and retain them based on the more “active” pages and engaging links on your site. We like Bitly‘s platform and friendly user interface for tracking links.
- Social Media Marketing allows you to offer incentives to current, old and potential customers for referrals, and in business development, referrals are one of the most powerful ways to grow your business.
If all else fails, or if you find yourself out of your depth, engage an expert like Rainmarxker to come up with a database marketing strategy that will work for you.