What is Database Marketing and Why is it Important?

Posted by Steve Rao On April 19, 2018

 

Why database marketing is important

 

You already have information on your current customers. You probably have some market research or sales information on your top prospects (if not, we can get you that data). But instead of letting all that data collect dust - literally or figuratively - you could be putting it to work.

Database marketing allows you to use that data to reach farmers with the right message at exactly the right moment. It lets you work smarter, not harder. You can achieve twice the results in half the time.

(Note: This article is part of the "Marketing to Farmers" series. Click here to  read the free guide.)

Here are a few examples of how you can put database marketing to work for your company.

Market the Product the Farmer Needs

The digital age has altered customers’ expectations in a lot of ways. Customers no longer expect or appreciate one-size-fits all marketing strategies. Rather, they expect customized messages, tailored to the channels they interact with and their particular interests.

Try marketing using old-school tactics, and you’ll end up wasting your precious time and resources. On the other hand, database marketing allows for smarter marketing all around.

If, for example, you compile data on your farmers’ fertilizer purchases and align it with your CRM data, you can get a better idea of which farmers are likely to purchase a new organic fertilizer that you’re getting ready to release to market. Data on seasonal fertilizer purchases, farm type, size and crop type can help you gather a list of farmers to tailor your marketing message for.

Your database already holds information on customer demographics and transaction data that can help you understand the right message, and the right time to send it.

Send Targeted Communications to Your Segments

When your data is divided into custom groups of farmers who have similar buying patterns, you can quickly customize marketing lists for each campaign you run. Custom marketing messages to tailored segments allow you to cut through the noise and get your message into the hands of customers who are likely to buy.

If you sell farm machinery, you might have customers with small farms who are likely to buy tractors and tractor accessories, and customers with large farms who are likely to purchase more complex machinery and expensive add-ons.

When you segment your market, you already know who’s likely to respond to a given product, so you don’t waste time marketing to farmers who are never going to buy.

Master Multi-Channel Marketing Strategies

Customers rarely purchase products after viewing a single ad, and farmers are no exception. Your farmers interact with print materials delivered to their mailboxes, online over social media and email, from their kitchen tables, computers, tablets and smartphones.

This means that you need to have marketing messages ready to deliver for each of these channels and you need to know where and when to send them. But it doesn’t mean that you need every message in every channel for every farmer.

Not only do you need to know farmers’ physical and email addresses, but you need to understand where they interact with marketing messages and how to reach them there, as well. Social media is a powerful marketing tool, and database marketing involves integrating your farmers’ social media activities and preferences with other data you already have on them.

Perhaps you notice that Millennial farmers are more likely to interact with marketing messages on your company Facebook page. Next time you prepare a social media marketing campaign, tailor your audience to these Millennial farmers who are likely to make purchasing decisions based on social ads.

Better Predict Customers’ Future Actions

Not only does your database help you pinpoint sales trends based on your farmers’ past purchasing behaviors and buying patterns, but it can help you to predict future sales as well. After all, past patterns are significant indicators of future activity.

When you use your database to analyze past patterns, you can accurately predict which customers are likely to buy in the future and which products they’re going to be interested in. This is important in planning future marketing messages, but it’s also critical in sales forecasting by market and product segment.

A comprehensive database marketing strategy allows you to make the most of your marketing activities by analyzing the data you already have. Database marketing can streamline your marketing activities by delivering relevant messages to individual market segments through the channels they already interact with.

This can help you to capture customers who might have otherwise slipped through the cracks and make sales to customers who are already considering the products or services that you offer. Additionally, database marketing lets you accurately predict future sales so that you can develop actionable sales goals for your sales and marketing teams.

To learn about more modern marketing practices, download our guide to modernizing your marketing and sales.

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