Is there any drawback that exists in Database Marketing?
Demandfor personalization by consumers has become much higher than ever before. Inorder to increase the reach of your business and deliver the expectedpersonalized experience to consumers, you can enjoy the benefits of database marketing.
Asper the recent report of Accenture, around 80 per cent of consumers areinterested in sharing their information in return for personalized suggestions.Though this marketing is not perfect yet its benefits outweigh all thedrawbacks.
What Is Database Marketing?
Theprocess in which social media, smart devices and any other source help togenerate numerous amount of data useful for companies in understanding consumerbehaviour to develop better quality products is termed database marketing (DM).
Largecompanies appoint and employ market research analysts to break down big datainto pieces to come up with actionable ideas. This process is all aboutanchoring customer information to make targeted lists useful for directmarketing activities.
Notonly this, this marketing strategy helps organizations approach their customerson a personal level. This consumer data is then used to create targetedmarketing campaigns. This enhances more powerful brand experiences at each andevery step of the consumer journey.
Benefits
Database marketing fetches the consumerdata helping marketers to deliver personalized experiences across all marketingchannels. For instance, online retailers make use of website cookies to displayand recommend relevant products to their audience.
Italso helps to save the extra advertising costs. It is much better thantraditional direct marketing since it allows you to understand customerbehaviour better to give a response accordingly.
Highbrand awareness, huge revenue are some of the potential benefits of DM.Depending on your business targets, you can use customer databases accordinglyto gather genuine feedback to make new ideas. These business insights offer astrong foundation for your web content designed to inform and engage yourtarget audience.
Is there any drawback?
Inthis marketing strategy, it is very important to ensure that your data iscompletely accurate and up to date, which can be done via constant monitoring.But this whole activity is expensive and time-consuming.
Oneof the biggest challenges in databasemarketing is data decay. In case your customers change their emailaddresses, city name and you're not aware of it, your marketing dollars go invain.
Themost potential disadvantage is data inaccuracy. For example, some consumers mayfill in fake names and contact info just to approach an e-book available fordownload on your site.
Thus,database marketing revolves aroundaccurate and consistent data. Along with this, you must be active enough tocapture your audience interests to offer them what they actually need.
