Customer Databases and Direct Marketing
There are dissimilarity between mass marketing and so-called one-to-one marketing. A customer database is an organized set of comprehensive data regarding individual customers or prospects, by including demographic, geographic, psychographics, and behavioral data. The database may be used to locate potential customers, tailor manufacture and services to the special requirement of targeted customers or/and maintain long-term customer relationships.
Database marketing is the procedure of building, maintaining, and utilizing customer database and other database for transacting and contacting with customers. A customer database is much more than only a list of names (For example customer mailing catalogue). Business-to-business marketers and service retailers frequently use database marketing mostly.
Companies utilize their databases in four ways which are following:
- Recognizing prospects.
- Reactivating customer purchases.
- Selecting which customers should receive a particular offer.
- Deepening customer loyalty.
As like many other marketing tools, database marketing needs a special investment.