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Definition:
Database marketing describes a way of organizing a company's entire marketing
and sales process. It includes a marketing and sales system that
continually gathers, refines, and utilizes information and data
that then drives relevant marketing and sales communications and
programs. Database marketing is used to acquire new customers,
retain customers, generate more revenue from existing customers,
and create long term loyalty. Database marketing has the ability
to be very broad and can impact market research and product development
all the way through customer service.
What database marketing allows you to do:
Information about customers and prospects that is accurate and available to
everyone within an organization can truly transform your company's
ability to market and sell. Database marketing allows you to work
more intelligently. It lets you take information you already have,
analyze it to find patterns, and use the analysis to run better
marketing and sales programs by targeting specific groups with specific
messages about products or services that are important to them.
The end result? If you target the right segments with the right messages
about the right products and services, you'll spend less money
and increase the return on your marketing investment.
Here are some examples of what you can do with database marketing:
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Determine which characteristics your best customers have in common so
you can target your next program to prospects that have those
same characteristics.
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Determine whether different market segments buy different products from you.
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Learn which market segments bring you the most revenue and which bring you
the highest average revenue.
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Find out which industries respond to which promotions so you can better
spend marketing dollars in the future.
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Find out which market segments not only respond to your programs but
actually buy and which buy repeatedly.
- Calculate the average lifetime value of your customers.
- Identify new customers.
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Reward your most frequent buyers and the buyers that bring you the
highest revenue.
Sources:
Excerpted from the White Paper entitled, "Profiling, Targeting,
and Segmentation" by John Coe.
How can zapdata help your database marketing efforts?
zapdata can help your database marketing efforts in several ways:
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Find new prospects. Once you have determined the characteristics
of your best customers, use those characteristics as the criteria
for your next prospect list. Our prospect lists tool allows
you to precisely define your prospects so you only purchase
the leads that are most likely to become your next customers.
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