4 advantages of database marketing

What is database marketing?

It is an efficient way of communicating and reengaging use of the database to collect, consolidate, analyze, understand and manage customer data to deliver relevant and customized marketing messages to the right consumers.

Database marketing is great to send out varied and tailored messages to different groups of customers. Usually because your business has past interactions and transactions with the customers in the database, which makes it easy to knows what their needs and preferences are.

Here are 4 advantages of database marketing

1. Increase the customers retention rate

Database marketing enables regular communication with customers hence builds customer relationship and retention.

Customer retention involves identifying and getting customers who are potentially lost back in the door through looking at past customers behaviors and analyzing the transactional history. This can be achieved through communication regularly with your prospective customers via email, e-newsletters or thorough telephone.

2. Increase the referral rate

Positive relationship crated with existing customers can influence others to become customers through positive word of mouth from satisfied customers.

3. Enhance and average purchase volume per customer

The more loyal your customers are the more they are likely to buy your products over the competitor offerings, furthermore existing customers are more likely to try new products compared to new customers.

4. Cut cost

Effective database marketing can lead to meaningful reduction in marketing communication expenses, because direct marketing often is more productive than mass media advertising.

If you are looking to include database marketing in you marketing plan please contact our professional marketing team at Elby Marketing


Gavrilović Z, Maksimović M. THE ICT AND DATABASE MARKETING: SYNERGY EFFECTS FOR BUSINESS SUCCESS. New Economist / Novi Ekonomist [serial online]. July 2017;11(2):86-91. Available from: Business Source Complete, Ipswich, MA. Accessed July 19, 2018.

Chitty, W., Barker, N., Valos, M., Shimp, T., 2012. Integrated Marketing communication Asian pacific edition. 3rd ed. Australia: Macmillan publishing services.

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