The information contained in your customer database is a rich and reliable source of insight into your customers’ needs, interests and buying habits.
An effective database will provide the background needed to create compelling and individualized marketing offers that enhance customer loyalty, improve customer retention and provide superior targeted customer service.
An effective database construction and maintenance program should allow you to:
- Collect important and actionable information on your customers, such as name, address, email and social media addresses, phone numbers, birth date, products and services purchased and preferences.
- Develop a way to figure out how much profit each customer could generate on at least a monthly basis.
- Divide your customer base into segments that indicate their interests and needs and show you where to focus your marketing efforts, customer retention tactics and lead generation strategies.
Important components of database marketing include:
- Data – Use your database to collect as much information about your current customers as you can. When you have a reliable profile of your existing customers, you can expand your marketing by pursuing other databases and marketing lists of individuals with similar characteristics. You can also use your existing database to find customers you could ask for referrals or testimonials.
- Offers – When you use your database for marketing to existing customers, present a useful and compelling offer that will entice them to return to your business. Provide access to special events or discounts, send greetings and coupons on their birthdays, or simply follow up to check satisfaction with their purchase. Your database can tell you what individual customers want and need, which allows you to customize offers based on customer profiles. From there, you can cross-sell or upsell additional products or services that are relevant to solving customers’ problems.
- Tracking – With your database, you need to track customer responses and determine which customers are viable and interested in your offerings. You can also figure out which offers, advertising campaigns or other marketing efforts are successful and how much profit each customer and each marketing program has generated.
How can you use your current customer information for database marketing to improve customer relations, boost sales and acquire new leads?
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