By gathering and systematization of customer behavioral information, database marketing aims to decrease the total cost of marketing campaigns concentrating on customers or leads with the most potential.
Sometimes more comprehensive information is included in the database in order to develop customer behavioral models by utilizing statistical systems. Such information can include products, providers or related business areas but generally refers to any data that can be linked to customer interactions.
Rarely seen as a strategy, database marketing is a tactical approach applied to a current marketing plan in order to increase its efficiency. Often omitted by many, rigorous planning and the underlining of main objective are necessary in order to obtain a significant increase in profit.
Such a database usually has these attributes:
Top companies have used database marketing in the past; often having allocated large financial resources to this sector, but now thanks to the ever-growing advances in information technology this particular marketing strategy is available to smaller companies as well.
Although the main principle of storing data about consumers and their interactions or responses to different situations is not new, computation power today offers the diversity needed for companies to personalize the interaction and data management required to compete in ever-growing markets.