Database marketing is often mentioned for its effectiveness involving direct mail, but it can also help accomplish your business goals in an electronic format. Database marketing is a huge part of email marketing, so the following blog will present greater detail on the subject.
Database marketing gives email lists and email newsletters the ability to personalize the consumer’s email and also determine what will go into the newsletter. When email list subscribers signup for the newsletter or email list, they are prompted to provide more information that the email list administrator determines such as name, interests, occupation, etc. That information is then uploaded into a database.
There are several benefits to database email marketing. Some of those benefits are outlined below.
1. Personalization for New Customers
Personalization is the general purpose of database email marketing. Personalization allows you to not only mention the recipient’s name in the email, but also differentiate the content of the email from one person to another. For new customers, personalization is especially important. Many email list subscribers simply subscribe because they are curious about what an email list or e-newsletter offers them. Their decision to unsubscribe to such an email list could be made within the first week of membership. As such, it is important to have a valuable initial newsletter for new subscribers. The personalization aspect should allow your newsletter to be more valuable, thus increasing the chances of the new subscriber remaining on the email list.
2. Time-Sensitive Emails and Efficiency
If you collect the correct information from your email list subscribers, you can send subscribers time-sensitive emails. For example, you could send an automated “Happy Birthday” email on your subscribers’ birthdays or an anniversary thank you email a year after they signup for your newsletter. These emails include the personalization aspect but are usually automated (if you have the right email list software or provider). Since the time requirement in sending such emails is almost non-existent, you would also be increasing your efficiency due to the database.
3. Increase Customer Lifetime Value
Increased customer lifetime value is an overall benefit of email lists that is accomplished even more effectively by database email marketing. Most of the benefits involved with database email marketing directly stem from the fact that you can create a personalized, one-to-one relationship. The benefits related to prolonging the customer lifetime value are no different. With the ability to send messages based on subscribers’ specific demographics, you can keep them interested in the newsletter more so than without personalization. For example, if your company sells arts & crafts items and one of the fields on your database is “favorite holiday,” you could then send special arts & crafts offers specifically for each person’s favorite holiday. By more specifically targeting customers on your email list, you are more likely to earn sales.