Database Marketing

Written by Tara Peris
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Database marketing is the centerpiece of the direct marketing movement. It builds on the idea that home mailings remain among the most effective strategies for attracting new customers, and it uses demographics and other key population characteristics to help businesses hone in on the best people to target. The time-tested approach of database marketing, coupled with advancements in data management techniques, make it ideal for any business.

The thing about sending out mailers is that you need to know who to target. Unfortunately, this isn't as easy as one would hope. You can purchase business lists and other similar information, but most people often find that their options are quite limited when it comes to whittling the list down to the real prospects.

How Database Marketing Works
Database marketing operates on the premise that a well-developed database of potential clients is the key to a successful operation. It must include relevant demographics and be of adequate scope and breadth so as to allow you to hone in on target segments of your population as needed. When your database is sufficient, everything else flows naturally.

All this suggests that you would be well-advised to spend time developing a data set that speaks to your business needs. You should be able to isolate smaller samples within your larger population and use them to run exploratory analyses that test the efficiency of a given marketing approach. This in turn ensures that each advertising campaign is as efficient and streamlined as possible.


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