A Comprehensive Guide To Database Marketing: All You Need To Know

How does your business target potential B2B clients? Do you follow an effective Database Marketing strategy? If not, here's why you should start right now. 
Aug 31, 2021
Esrat S.
Content Writer @ OneMoreLead

As a business person, how do you approach your prospective clients? Do you follow a customer-centric approach or not? Do you try to understand what your customers need, and respond with engagements that meet these needs? If your answer is “Yes,” you are probably familiar with database marketing.

database and software written on a tablet
Image from Freepik by rawpixel.com

Real-time data. Actionable insights. 360 customer views. Personalized engagement strategies. Omnichannel campaigns. These may be buzzwords, but they’re also critical to effective marketing and business growth, and database marketing is the key to all of them.

Table Of Contents


  • Database marketing is a systematic approach for gathering, consolidating, and processing consumer data.
  • There are 2 types of Database Marketing: Consumer Database Marketing and Business Database Marketing.
  • Database Marketing is important because it enables marketers and advertisers to create relevant messages to their current and potential customers.
  • Though Database Marketing offers tons of benefits, it comes with some challenges including, data decay, lack of data accuracy, and more.
  • Database Marketing is not the same as Direct Marketing. Rather it is an extension of Direct Marketing.

What Is Database Marketing?

Database marketing, aka customer relationship management, is a process where you collect, organize, and analyze consumer data in such a way that you can use it to better communicate with existing or potential customers.

It frowns upon the “one size fits all” standard marketing approach, adhering instead to the axiom that people respond better to more tailored, more personalized marketing. Simply put, database marketing involves understanding and managing your customer database.

Database marketing is an extension to direct marketing.

It allows the increase of customer engagement and loyalty programs for businesses. One of the main reasons marketers use database marketing is due to its power to create a personal shopping experience for customers. Not only that, but it also improves the efficiency of your marketing.

Types Of Database Marketing

There are two types of database marketing: Consumer Database Marketing and Business Database Marketing.

Consumer Database Marketing

This type of marketing is used by B2C or D2C marketers who sell their products direct to the customer.

Generally, B2C companies apply some basic strategies like free giveaways, free shipping, discount offers, contests, and account registration during checkout to collect the consumer database.

These usually help them collect the first and last name, email address, phone number, gender, location data, transaction history, postal address. Through third-party data sources, other attributes like household size and income can be appended to the customer file.

Once they built the consumer data they can send personalized advertisements, offers, or promotions through various sources of marketing like Social media (Facebook, Instagram, Email, postcards, and more)

Business Database Marketing

This type of marketing is mainly done for B2B companies that sell directly to businesses.

In the Business database, the information is more advance compare to the consumer database focused on high-value targets. That’s why this database is smaller than the consumer database, also subject to lower restrictions and privacy limitations.

The Information gathered in this database is a company Email address, company profile, job titles, annual turnover, company/employee size, estimated annual revenue, SIC and NAICS codes, technology stack, and LinkedIn profiles. This information can be easily acquired through a data provider.

The primary goal of B2B database marketers is to reach key decision-makers in organizations at scale through benefit-driven emails, industry-focused social media ads, and targeted direct mail pieces.

Importance Of Database Marketing

Database marketing enables marketers and advertisers to create relevant messages to their current and potential customers. When done right, there are many benefits of database marketing.

Here are a few:

  • Helps customer segmentation by separating existing customers from new leads.
  • Prioritizes your most valuable accounts.
  • Gives you the ability to predict customer behavior.
  • Allows you to test new ideas and products.
  • Allows you to gather feedback and better understand customers’ needs.
  • Keeps your brand stays relevant and top of mind.
  • Increases customer retention by building relationships.
  • Establishes thought leadership credibility and builds brand affinity.
  • Enhances future promotional campaigns.
  • Uses data to create relevant messages and meaningful experiences with your audience.
  • Measures the success of your campaign.

How Database Marketing Works

To keep database marketing work smoothly, marketers need to follow some basic steps:

Data collection

If marketers want to sell their products in the market it is necessary to find out the targeted audience which is possible through data collection. It includes name, address, or other demographic information about the customer. This data will be collected from third-party bodies or directly through the customer.

Gather Knowledge from the data

After data collection, the next step would be analyzing the data and gather the information that can be used for marketing.

Hands using tablet screen showing statistics business data
Image from Freepik by rawpixel.com

For making a model of customer behavior marketers can use a Database management System or Statistical Techniques through which they can make a decision on which type of customer will be targeted.

Communicate with the customer

Once you’ve collected the data, you need to communicate with the identified customer by sending the promotions and keep them updated by using digital media like email.

It is important to keep the frequency of these emails in check to avoid flooding the customer’s inbox with too many updates. This can also easily end up in the spam or junk folders.

Making Business strategies

Database marketing is not just about sending promotional emails or creating a list of the targeted audience but it is more than that. By deep analysis of this information, marketers can make future business strategies.

Effective Database Marketing Strategies

How should you get started creating your own database marketing strategy? Here are a few things to consider.

Identify your target audience

How old are they? What income level? What job title? Where do they live? What are they interested in? What else do they buy? Build a detailed ideal customer profile for your product, and then use this profile to decide what kind of information you need to include in your database.

Collaborate with other teams

Marketing, sales, and support all have direct contact with customers and prospects. What information does each team need to be effective?

Find the right software

Customer data doesn’t do anyone on your team any good if they can’t access it. Choose a tool that makes it easy to see different kinds of information, customer types, and even organize customer information to match your different product or service categories.

Gather customer data

Look to both internal and external data sources, including, acquisition data, demographic data, technographic data, activity data, psychographic data, transaction data, and correspondence data.

onemorelead database
Source: OneMoreLead

Keep data up-to-date and backed up

Building a customer database takes a lot of time and effort. Protect your investment by safeguarding against power outages and technical glitches.

CRM software can automatically update profiles when customers enter new information, and online tools can protect against data decay by integrating with your software and updating each contact as they browse your website with activity data.

Respect customer privacy

Social media makes it easier than ever to get detailed insights into your customers’ interests, perspectives, and life updates. Effective personalization is about providing a relevant message to an interested audience, not proving how much personal data you have.

Benefits And Challenges Of Database Marketing

Though effective Database Marketing is essential for overall success, it comes with both benefits and challenges. Here are the benefits and challenges of database marketing:

Benefits Of Database Marketing

Today’s consumers expect a personalized experience with your brand. To deliver one, marketers need a unified view of each customer across every touchpoint. Only then can they understand the customer’s journey and engage them in a meaningful way. Database marketing strategies make that easier.

Customer databases can help you:

  • Identify customer groups from your most loyal, high-value customers to first-time customers and occasional purchasers.
  • Create detailed customer segments based on demographics, behaviors, or even personal interests.
  • Design highly personalized messages for both current and prospective customers.
  • Determine the best channel and time to engage customers.
  • Improve your marketing efficiency by not wasting time and money sending campaigns to those who are unlikely to respond.
  • Build effective loyalty programs that provide the right incentives for repeat purchases.
  • Improve customer service by providing support staff with a 360° view of the customer’s interactions with your brand.

Challenges Of Database Marketing

Database marketing offers some compelling benefits. But to do it successfully, marketers need to understand the challenges as well.

Watch out for these database marketing challenges:

Data decay

Anytime a customer or prospect changes jobs or earns a promotion, moves to a new address, changes their name, gets a new email address, or makes any other life change, their profile becomes out of date.

A well-managed database decays at an average of 2-3% each month, which means in just a year, a third of your data could be invalid. To limit data decay, focus on information that is less likely to change: name and phone number, for example, rather than business email.

You can also use an email and phone verification service to make sure you have the latest information in your database.

We recommend VerifyBee - an intuitive, feature-rich, and affordable customer verification software. It is built for businesses looking to streamline their sales, intake, outreach, and customer relation efforts.

Data accuracy

Customers don’t always provide accurate information. Typos, handwriting legibility, or incomplete info can have a big impact on the quality of your database. You can limit inaccuracies by replacing input fields with standardized drop-down menus or checkboxes.

Acting on customer data in a timely manner

Collecting and analyzing customer data is just the first step. You have to act quickly enough to capitalize on a customer’s interest in and interactions with your brand.

This is where marketing automation tools or B2B Database Software become so important.

By unifying rich user profiles with a powerful segmentation and omnichannel marketing campaigns, you can deliver timely, personalized experiences for each user.

Difference Between Database Marketing And Direct Marketing

Database Marketing is a form of direct marketing. While the terms are used interchangeably at times, these are two distinct concepts. Here are the key differences between database marketing and direct marketing.

  • Database Marketing involves the collection of customer data to create personalized content, while Direct Marketing solely relies on direct distribution or communication to consumers.
  • Database Marketing tracks buying behaviors, and offer post-purchase feedback as well as online reviews. On the contrary, Direct Marketing is presented to potential customers based on information that’s been gathered about them.
  • Examples of Database Marketing include Free trials, Loyalty Programs, Personalized emails, Free shipping offers, Online Contests, Social media giveaways, Discount codes. Examples of Direct Marketing include Texts, Emails, Brochures, Fliers, Newsletters, Targeted online display ads, Coupons.

Try Database Marketing If

  • You can embrace technology: You are willing to invest in technology. It’s an absolute must to spend capital upfront to invest in technology, not only to protect the data but to utilize it.
  • You can hire and retain great people: You are willing to invest in people. Having all the data in the world won’t do you any good unless you have smart analysts, marketers, and technologists that can create actionable marketing campaigns based on that data.
  • You can support an omnichannel approach: You are willing to spread your brand and product into various channels. Whether it’s retail, direct mail, phone, mobile, or desktop, the more you’re willing to meet your customers where they are, the more effective your marketing will be.

Try Direct Marketing Methods If

  • You’re on a budget. Collecting information and data from your customers, cataloging it, analyzing it, and then acting on it is not a quick and easy task. It can be costly, depending on how complex your strategy is. And it will almost definitely be time-consuming, so if you’re on a tight budget, this may not be for you.
  • Your company uses disparate systems. Some companies have gotten themselves into a position where they use many different systems to collect and organize information. If this is your company, it could be challenging to centralize it all in a way that would make it actionable and relational.
  • Data protection seems scary. Security of individuals’ information is only becoming more and more relevant, and more and more complex. GDPR (General Data Protection Regulation) is the most stringent and comprehensive data reform. It is becoming more popular.


With thousands of advertisers fighting for customers’ attention every day, the need for a database marketing strategy is critical. The businesses that place their customer’s needs, experiences, and preferences will always come out on top!

If you’re looking for a B2B Database providing tool to help you in this process, you can give OneMoreLead a shot. With a database of over 40 Million verified B2B prospects to search from, OneMoreLead allows you to easily find the perfect prospect for your product or service.

So what are you waiting for? Book a OneMoreLead demo today!


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