How Database Marketing Can Improve ROI

March 31, 2012 by  Filed under: Marketing 

Database marketing, or using a database of customers and their addresses for direct marketing, is a very popular marketing method for large businesses. It has the ability to dramatically improve ROI by using customers you have already acquired and by judging a consumer’s behavior. With the rising cost of marketing, using this method can secure better sales from your customers while keeping costs well below your budget.

Use Acquired Customers
It is no secret that marketing to acquired customers is much easier than marketing to new customers that don’t know about your business. This marketing method gives you the perfect opportunity to go through your database to find the best customers for your upcoming sales and promotions. You have to invest very little in reaching these customers, which improves your ROI.

Behavior-Based Marketing
Another part of this marketing tactic is using behavior-based marketing. Databases will not only record the address of your customers, but they track your customers’ behavior. If they are buying many health-related products from your store, then the databases will track that.

Next time you release a promotion on related products, you can direct mail this person for a great return. When you cater to a customer’s behavior and give them promotions that really benefit them, then you will often see a return.

Avoiding Spam Costs
When you send out direct mail to a large list of people you will often be considered a spammer. If you can’t directly promote products and services that are relevant to your customers, then you will often be ignored or even disliked by your customers. This leads to a big problem, because companies that spam often see fewer customers.

However, since a database tracks what your customers are doing, your marketing will remain relevant. This improves your ROI and your company’s image.

Real-Time Marketing
Many methods for procuring data take time and effort. When you use a database, it will update almost instantly whenever you gain a new customer or whenever he or she buys something. This lets you make informed marketing decisions at any time during the day.

Database marketing is one of the best ways to market to your customers. Not only can you improve your ROI and remain relevant to your customers, but you can avoid the costs of spam direct mailing and you can make informed decisions. Try this marketing method out and you will see just how powerful it is for your company.

If you are interested in how to best implement database marketing, check out our website to get more information.

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