The Ins And Outs Of Database Marketing

One of the tactics that has become popular with companies looking for new clients is the tactic of database marketing. Companies buy databases of either email addresses or contact numbers from companies who collected this data with the intention of selling at a later stage. We will explore the ins and outs of actually getting the databases and how database marketing works.

The first thing that happens is the collecting of data from unsuspecting people. This happens when you tick one of those little boxes that appear on so many forms. They often say something like “Would you be interested in being told about new developments and products similar to this one?” Those of us that unthinkingly tick yes find ourselves added to a database of potential clients.

Another method of collecting the contact information is through a website database system. This is gathered by having an option to receive a weekly newsletter or some such thing. You will be asked for an email address or contact number. This information is added to the database to be used for database marketing.

After a certain number of contact details has been accumulated, the database is finalised. It can then be either sold to an interested party or kept for future use by the company that generated it. Should it be an email address database, it is entered into a system that automatically send s emails out to each address on the list. This email will contain information about the company doing the marketing and about the product they are selling. The email will often include a link to the company’s website or product page in order to further punt the product.

Database marketing is a much more effective and efficient technique than cold calling. A tactic which involves contacting a random selection of people out of the phone book and attempting to sell them a product or service that they do not need or want to buy. Cold calling is very inefficient and costs a lot in phone bills to keep up.

You do need to be careful with database marketing. You need to have the person’ permission to sell their information to other companies or to send them promotional material. Failure to do so may result in numerous law suits and a lot more trouble than it is worth. So if you intend on buying a database form a company in order to do some targeted database marketing, make sure they obtained the contact information legally and are authorised to pass it on to other people. If this is not the case, you may find yourself and your company in jeopardy.

Database marketing is an effective technique, but do not expect to sell something to every person on the list. It has a much better hit rate than, say, cold calling, but is not a sure fire way to get a lot of new business. Be careful of using unauthorised contact details, this can land you in a lot of hot water with the law.