Database marketing

Database marketing is a systematic approach to the gathering, consolidation and

processing of consumer data. Database marketing is also a form of direct
marketing and may be called customer relationship management. Data of both
customers and potential customers are collected and are maintained in a
company's database. The process of collecting this data allows an organization
to better know and market to their customers, leading to more potential sales.
Organizations such as retailers, technology vendors, insurance companies and
other services may make use of database marketing as a marketing strategy. This
approach to marketing is most useful for organizations that have large customer
bases, since they will generate more transaction data, meaning more aspects to
find new prospects.
EXPLANATION:
Ang database marketing ay isang procces sa pagkuha ng mga impormasyun
tungkul sa isang consumer. ang database marketing ay isa ring form ng direct
marketing na maaaring tawaging consumer relationship management. And data
ng parehong customers at potensyal na customers ay kinokolekta at pinapanatili
sa database ng isang kumpanya. ang proseso ng pagkuecta ng mga data na ito ay
nagbibigay-daan sa isang organisasyun na mas makilala at maibenta sa kanilang
mga customers na maaaaring makadagdag sa mas maraming sales. mga
organisasyon tulad ng mga retailer, nagtitinda ng technolohiya, at maarami pang
iba.
Although databases have been used to hold consumer data in traditional
marketing for a long time, the database marketing approach is differentiated by
containing much more consumer data. The data is also processed and used in
different ways in database marketing.
EXPLANATION:
At kahit na ginagamit na ang database marketing dati pa ay nag iiba ito dahil sa
paiba- ibang mga data na makakalap natin.

In database marking, marketers will use the collected data to learn more about
customers, select target markets for specific marketing campaigns
(through customer segmentation),
EXPLANATION:
Ginagamit and ng mga marketers ang database para mas makilala pa ang kanilang
mga consumer tapos gumagawa sila ng mga marketing campaigns, sa
pamamagitan din ng customer segmentation.
Compare customers' value to the company and provide more specialized offerings
for customers. Collected data may include customers' names, addresses, emails,
phone numbers, purchase history, job titles, website cookies or even customer
support tickets.
After data collection and storage, the data can then be analyzed and used by
marketing teams to make a more personalized interaction for each customer and
to attract new potential customers.
EXPLANATION:
How does database marketing work?
Database marketing starts by collecting data from various sources. Names,
addresses, emails, phone numbers, purchase history and other data can be
tracked. The data can be collected through various means, including tracking
user cookies, purchase history, newsletter subscriptions, or anything that will
require the signing of forms, such as contest entry forms, offering free sample
products, product warranty cards and so on. Leads from marketing and sales
teams can lead to the creation of additional customer records. Prospect data can
also be purchased from third parties -- although different countries may have
different laws regarding what types of data can be bought and sold.
This information, once gathered, is then stored in a database. Larger
organizations might house that database in a data warehouse. A data
warehouse will receive different data sets from separate departments that have
any relevant information regarding customers or potential customers. Having a
data warehouse will also allow an organization to process large amounts of data.
The data can be filtered through database analysis using marketing software. The
data can be separated by factors like demographic or potential prospect
behaviors. The database should be kept as up-to-date as possible. It should be
assumed that a customer or potential customer's data will change over time. To
keep from collecting outdated information, an organization should place more
focus on information that is less likely to change, such as names, phone numbers
and emails.
EXPLANATION:
Ang database marketing ay nag cocolecta ng mga data ng consumer, tulad ng
pangalan, addres, emails, phone numbers, for example kanang mag sign up ta sa
shoppe, diba mag fill up tayo ng for asking for our personal details like mentioned.
Database marketing benefits 
Database marketing can provide benefits to marketers, advertisers and
consumers by:
 Finding the best channel to contact customers.
EXPLANATION:
Ginagamit nila ang database marketing para maman an kung anon a mga
platforms ang ila gamiton para mas dali na ma give nila o ma pakita nila ang
ila nga mga advertisements.

 Identifying customer groups, such as loyal customers, first-time customers

or potential customers.
EXPLANATION:
Para maman an nila kung sin-o ang ila nga loyal customers kag ang mga
first-time customers kag ang mga potential customers.

 Organizes prospects on demographics and other potential demographics,

such as potential interests.
EXPLANATION:

 Prioritizes valuable accounts.

EXPLANATION:
Para malaman kung sin-o ang mga customers na dapat e prioritized sa mga
promotions.

 Personalizes marketing messages toward individual prospects.

EXPLANATION:
Para malaman kung anong mga tamang way sa pag promote o promotion
na ibibigay sa mga customers.

 Potential to increase customer retention.

EXPLANATION:
What is customer retention? Customer retention is a metric that measures
customer loyalty.

 Data collected can be used for future promotional campaigns.

EXPLANATION:
 Ang mga detalye na nakalap ay magagamit sa future na mga promotions.

 Saves expenses on sending campaigns to unlikely customers.

EXPLANATION:
Mabawasan ang pag gastos para sa mga advertisements na binabayaran na
hindi naman nag wowork

Database marketing challenges 

Despite the benefits an organization can see from database marketing, there can
also be a few challenges as well. For example:
The collected data can become outdated. If someone changes jobs, for example,
their job title and business email may change. Their address may even change if
they had to move for the new position. Data should be kept up-to-date as much
as possible.
The data originally collected will also be incorrect if the individual inputs incorrect
information. Using drop-down menus and checkboxes on forms can help acquire
more accurate information. However, with limited options, this too may limit
accuracy.
The cost of managing a database server could be high if there's no way to get
value from the information being collected.
Accidently marketing to the wrong contacts, or grouping contacts together
incorrectly, will drive customers away.
Types of database marketing 
Database marketing can take place in two forms, consumer database marketing
and business database marketing. The difference between the two is the target
audience.
Consumer database marketing is used by businesses that sell directly to a
consumer, or B2C organizations. Data collected in consumer database marketing
includes names, email addresses, phone numbers, addresses, genders and
locations. To gain this information, an organization may implement giveaways,
contests, account registrations or offers for free shipping. Once that information
is stored, it can be used by sending personalized mail or emails to consumers.

EXPLANATION:
Ang B2C o ang consumer database marketing ay kumukuha ng mga detalye sa
mga consumers katulad ng mga pangalan, email addresses, phone numbers,
addresses, genders and locations. para makakuha ng mga impormasyun na pwede
nila magamit sa pagkilala ng kanilang mga consumers upang makabuo ng
EXPLANATION:
giveaways, contests, accounts registrations or vouchers like free shipping.
ginagamit nila ito upang makabuo ng mga personalized na mga advertisements sa
kanilang mga consumers.
Halimbawa: SHOPPEE AT LAZADA, sa pag register mo o paggawa ng account
ay nagbibigy ka ng mga detalye about sa sarili mo at pagkatapos mo mag register
ay may kaagad na na mga promotions para sa iyo and habang tumatagal ay may
mga another promotions naman according to your shopping history.
Business database marketing is used by organizations that sell directly to other
businesses, or B2B organizations. The data collected in business database
marketing includes information such as company revenue, names, e-mails, phone
numbers, job titles, website cookies and purchase history. B2B organizations
would want to collect such data through LinkedIn, event
registrations, whitepaper downloads, industry reports, demos, free trial offers, or
webinars. Once this data is collected and stored, an organization can start
marketing through benefit-focused emails or targeted social media ads.

 Account-based marketing will help in maintaining a small, detailed business

database.
A database used for business database marketing may be smaller than a B2C
database. Organizations that employ business database marketing may only focus
on large target accounts, so there's no need for a large database to store large
amounts of customer information.
EXPLANATION:
Database marketing tips and strategies
There are numerous tips and strategies regarding database marketing. For
example, some basic tips include:
Know the audience being marketed to. If an organization lacks detailed customer
profiles, they may not have as much informed insight into who their prospect
customers are.
EXPLANATION:

Know the data that will be the most useful to collect. It may be information like
demographics, activity or transaction history.
EXPLANATION:

Respect a customer's privacy. Personal information found on social media may be

easy to find, and having an abundance of identifying information could be useful,
but potential customers will not like having so much personal data about them
being kept -- especially without their knowledge.
EXPLANATION:

Work with other internal teams. Sales, support and marketing teams will all have
information about customers to collect because they often work directly with
customers.
EXPLANATION:

Use marketing software. Software tools should help make it possible to see
different data points at once, view customer type or organize data by service and
product categories.
EXPLANATION:

Keep data as up-to-date as possible. Information can deteriorate pretty quickly as

people move, change jobs and email addresses, or make other life changes. It is
important to value information that is likely not to change often over information
that will.
EXPLANATION:
Implement strategies such as multichannel marketing or predictive analytics.
Real-life examples
A couple examples of database marketing could be an e-commerce app that uses
data about transaction history to better and quickly assess a customer service call
or a food delivery app using transaction data to find which times a customer is
most likely to order from them. However, some real-life examples of database
marketing can be found in Facebook, Amazon and Netflix.
Facebook will segment user data by name, email, phone number, gender, date of
birth, location, and interests. This allows Facebook to create personalized
experiences for their users and information for marketers.
Amazon will collect data such as what users have viewed, purchased or put in a
wish list. Amazon will then cross-reference this with what other users have
bought and use the resulting data to try and sell new items to the potential buyer.
This process creates a recommendations engine, which is based on consumer
behavior.
Netflix will track data about what shows and movies a user views, then cross-
references that data with what similar users have viewed to provide
recommendations.
EXPLANATION:

This was last updated in October 2020

Customer segmentation is the practice of dividing a customer base into groups of
individuals that are similar in specific ways relevant to marketing, such as age, gender, interests and
spending habits.
Companies employing customer segmentation operate under the fact that every customer is different
and that their marketing efforts would be better served if they target specific, smaller groups with
messages that those consumers would find relevant and lead them to buy something. Companies also
hope to gain a deeper understanding of their customers' preferences and needs with
the idea of discovering what each segment finds most valuable to more accurately tailor marketing
materials toward that segment.
Customer segmentation relies on identifying key differentiators that divide customers into groups that
can be targeted. Information such as a customers' demographics (age, race, religion, gender, family
size, ethnicity, income, education level), geography (where they live and work), psychographic (social
class, lifestyle and personality characteristics) and behavioral (spending, consumption, usage and
desired benefits) tendencies are taken into account when determining customer segmentation
practices.
Customer segmentation procedures
Customer segmentation, also called consumer segmentation or client segmentation, procedures include:
Deciding what data will be collected and how it will be gathered
Collecting data and integrating data from various sources
Developing methods of data analysis for segmentation
Establishing effective communication among relevant business units (such as marketing and customer
service) about the segmentation
Implementing applications to effectively deal with the data and respond to the information it provides
Benefits of customer segmentation
By enabling companies to target specific groups of customers, a customer segmentation model allows
for the effective allocation of marketing resources and the maximization of cross- and up-selling
opportunities. When a group of customers is sent personalized messages as part of a marketing
mix that is designed around their needs, it's easier for companies to send those customers special
offers meant to encourage them to buy more products. Customer segmentation can also improve
customer service and assist in customer loyalty and retention. As a by-product of its personalized
nature, marketing materials sent out using customer segmentation tend to be more valued and
appreciated by the customer who receives them as opposed to impersonal brand messaging that
doesn't acknowledge purchase history or any kind of customer relationship.