October 27, 2014
What is Data Marketing?
Data marketing is an increasingly common form of marketing which relies on using data about customers that been collected and stored in various company databases. This information allows direct marketers to tailor their campaigns, so that they are only targeting people who are likely to be interested in their products and services.
Data marketing relies on a huge body of data, which encompasses everything from customers’ ages to the products they buy and even their race and gender, with so much information now being stored by companies everywhere, it has never been easier for companies to succeed in increasing their sales via data marketing and this makes it a very valuable tool indeed.
Because data marketing is such a huge business and it deals in huge volumes of data each and every day, many companies now use vast data warehouses to store their customer information. They then have to sort it into various criterions and work out how to extract the maximum value from it. This can be a very time consuming and daunting task, which is why so many companies are now outsourcing their data marketing to expert companies who can sort, analyse and manage their data for them. Such companies are worth their weight in gold because they are able to take on the challenge of efficient data marketing with ease and are able to precisely target just the right people to sell more products.
Data marketing not only enables companies to make more money, but it also helps them to manage their customer relationships in a much more effective and efficient manner too. Data marketing allows companies to work out how long a relationship they are likely to have with a customer and which products they are more likely to be interested in; which allows companies to better target their communications. By doing so, they can extract maximum value from a customer without upsetting or annoying them with the communications they send. This often makes for much higher customer retention and satisfaction levels.
By using data marketing, companies can send out bulk mail without the risk. Because the demographics have been so precisely worked out, they know they will not be wasting money with their mass-mailing campaigns in the future. Whereas, without data marketing and analysis, they would be sending mail blind, with efficient data marketing, they know their bulk mailing money is being spent as wisely as possible, targeting valuable customers who will, at the very least, be interested in what the communication has to say.
B2B and B2C
Data marketing can be used for both business to business and business to customer marketing. As long as companies can find the right data and analyse it well, they should have absolutely no trouble in identifying both businesses and customers who may be interested in their products and services. If they manage their data well and target their communications effectively, they will have no problem in doing a brisk business with the help of data marketing.