Database marketing is a process of direct marketing to a bigger number of buyers, in a way that communication is personalised and relevant for every person, unlike the undifferentiated mass marketing. In the centre there is modern CRM system, which strives to integrate all the data we have, to give a better service to users and also to increase their value and decrease the speed consumption.
Over time, large numbers of clients data have been statistically analysed to determine how will the users behave while buying. That allowed us to serve that clients with specific communication that gives one-on-one relationship perception.
Many companies see that data as a “new gold”. They use large amounts of users data for making profiles and segments, and then they sell that data to third parties or sell targeted advertising to third parties that will be served selectively to different segments of buyers.
Marketing Databases always relies to two different sources:
1. Internal data
2. External data.
Internal data is owned and led by company. They are for their own clients. External data is made for individuals who are not yet clients, and their that is held by third party that works with selling or “renting” that data.
Things that changed over time are technical possibilities and expense sturctures. It was cheaper to generate your own moves to get bigger internal data.
Today, it is cheaper to buy external data. For example, CEO list can cost up to 15$, but you can use sponsored Linkedln email to get CEO for about 1$.
Change of buyers behaviour accelerated the development of better tools to follow users, their segmenting and giving them personalised expirience.
Personalisation can now be achieved by building a list of clients based on your clients behaviour on your website.
Nowadays, it is possible to use internal data that we have about our clients, based on external sources such as Google, facebook etc. In that way we use our internal data to define an ideal client, and then target similar profiles.