What is database marketing? Introducing the steps to implementing database marketing and examples of how companies are u
Posted: Wed Dec 04, 2024 7:04 am
It's 2024, and we live in a digital society where effective use of data can make a huge difference in marketing results. Of course, you're well aware of that. Still, data-related work is mundane and tedious, and although it's the foundation of all work, it tends to be put off.
Although database marketing is particularly important for B2B SaaS, unlike in the past, companies can now collect vast amounts of data, making data management more difficult. Marketers must be struggling with which data to choose and how to analyze it.
In fact, data quality is so important that according to Dun & Bradstreet 's 7th Annual B2B Marketing Data Report, 100% of B2B companies that increased their investment in data quality thailand b2b leads saw an improvement in their overall performance, and approximately 94% also saw an improvement in their sales and marketing performance .
In this article, we will explain the overview of database marketing, as well as the types of data handled in BtoB marketing, key points for data quality control, and the results that can be achieved through database marketing.
What is Database Marketing?
Database marketing is a concept that involves centrally managing data on customers and potential customers, conducting marketing that is appropriate for each customer, and increasing sales.
The data handled by B2B companies can be broadly categorized into " mass data," "transaction data ," and " intent data (e.g., online behavior data) ." In marketing, the following customer data is mainly collected:
Customer data (BtoB): Company name, department name, job title, name, email address, phone number, transaction history, online behavior history, third-party data, etc.
Database marketing involves analyzing the data in such databases and using it to plan and execute marketing strategies.
For example, you can conduct personalized marketing for each customer segment or for each individual customer to increase sales. Or, you can take measures such as delivering marketing messages to the appropriate channel based on attribute data and behavioral history data of new potential customers to promote customer conversion.
The return on investment in B2B data quality
The Concept and History of Database Marketing
Database marketing is a type of direct marketing . The concept itself is simple: think of it as advancing business based on customer data (proposing products that each customer might like, providing necessary information, and deepening communication).
It is, so to speak, the basis of business; it was used in medicine sales in Echigo and Toyama , Japan, in the old days, and the RFM analysis used in modern database marketing was originally a method developed by an American mail-order company.
Image of a medicine seller in Etchu Toyama
(Source: LOTAS TOWN " The Kokando Museum provides an easy-to-understand introduction to the history and culture of the Etchu Toyama medicine seller, which dates back to the early Edo period .")
Even in this day and age , there is a lot of uproar over taking a customer list with you when you leave your job , so a customer database is a treasure for a company, the basis of sales that they would like to keep secret.
Database marketing used to be dominated by catalog marketing and telemarketing. Now in 2024, there are more diverse methods for collecting, analyzing, and approaching data, such as SNS marketing and email marketing. As a result, the ability to use data effectively has made it easier to see differences in results.
The difference between database marketing and CRM
A concept that is often confused with database marketing is CRM initiatives (in this case, CRM as a marketing method, not a tool). Although both share the common goal of utilizing customer data, there are differences in purpose and method.
CRM stands for "Customer Relationship Management" and aims to build long-term relationships with customers. By managing information about each customer and taking an approach that is suited to each one, we aim to increase customer satisfaction and loyalty. Increasing sales is of course important, but CRM's distinctive feature is that it places even more importance on customer engagement.
Although database marketing is particularly important for B2B SaaS, unlike in the past, companies can now collect vast amounts of data, making data management more difficult. Marketers must be struggling with which data to choose and how to analyze it.
In fact, data quality is so important that according to Dun & Bradstreet 's 7th Annual B2B Marketing Data Report, 100% of B2B companies that increased their investment in data quality thailand b2b leads saw an improvement in their overall performance, and approximately 94% also saw an improvement in their sales and marketing performance .
In this article, we will explain the overview of database marketing, as well as the types of data handled in BtoB marketing, key points for data quality control, and the results that can be achieved through database marketing.
What is Database Marketing?
Database marketing is a concept that involves centrally managing data on customers and potential customers, conducting marketing that is appropriate for each customer, and increasing sales.
The data handled by B2B companies can be broadly categorized into " mass data," "transaction data ," and " intent data (e.g., online behavior data) ." In marketing, the following customer data is mainly collected:
Customer data (BtoB): Company name, department name, job title, name, email address, phone number, transaction history, online behavior history, third-party data, etc.
Database marketing involves analyzing the data in such databases and using it to plan and execute marketing strategies.
For example, you can conduct personalized marketing for each customer segment or for each individual customer to increase sales. Or, you can take measures such as delivering marketing messages to the appropriate channel based on attribute data and behavioral history data of new potential customers to promote customer conversion.
The return on investment in B2B data quality
The Concept and History of Database Marketing
Database marketing is a type of direct marketing . The concept itself is simple: think of it as advancing business based on customer data (proposing products that each customer might like, providing necessary information, and deepening communication).
It is, so to speak, the basis of business; it was used in medicine sales in Echigo and Toyama , Japan, in the old days, and the RFM analysis used in modern database marketing was originally a method developed by an American mail-order company.
Image of a medicine seller in Etchu Toyama
(Source: LOTAS TOWN " The Kokando Museum provides an easy-to-understand introduction to the history and culture of the Etchu Toyama medicine seller, which dates back to the early Edo period .")
Even in this day and age , there is a lot of uproar over taking a customer list with you when you leave your job , so a customer database is a treasure for a company, the basis of sales that they would like to keep secret.
Database marketing used to be dominated by catalog marketing and telemarketing. Now in 2024, there are more diverse methods for collecting, analyzing, and approaching data, such as SNS marketing and email marketing. As a result, the ability to use data effectively has made it easier to see differences in results.
The difference between database marketing and CRM
A concept that is often confused with database marketing is CRM initiatives (in this case, CRM as a marketing method, not a tool). Although both share the common goal of utilizing customer data, there are differences in purpose and method.
CRM stands for "Customer Relationship Management" and aims to build long-term relationships with customers. By managing information about each customer and taking an approach that is suited to each one, we aim to increase customer satisfaction and loyalty. Increasing sales is of course important, but CRM's distinctive feature is that it places even more importance on customer engagement.