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 hta needs to happen, is the collecting of the data.You will find yourself added to one of these databases whenever you tick one of those unassuming little boxes that says "Would you like to be informed of additional products and services similar to this one?" These boxes are on so many forms, many of us do not think twice about ticking the little unassuming box.

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.

Once a suitable number of potential clients has been accumulated, the database can either be sold to an interested party or kept by the company that generated it for their own use. The next step is to enter the gathered information into a system that will automatically send emails to the contacts in the database. These emails will contain information about new products and services offered by the company. The email will also include a link to a website or sales page where interested parties can go to in order to buy 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.

The area of database marketing you need to be wary of is the legal aspect. If you do not have permission from the person whose contact details you are selling to do just that, you may find yourself in deep trouble with the law as you wouldbe violating that person's right to privacy. 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.

For more information on database marketing, go to http://www.3waymarketing.co.za