Databases are a valuable business asset for distance selling. You can rent or sell your database to third parties, giving you an extra income stream. Databases are also a great tool for getting to know your customers and their expectations and needs. Here are 5 tips to help you optimize and make the most of your database.
1- Enhance your database regularly
Whether your database contains factual or relational information, it needs to be enhanced regularly to be effective. At the very least, you need to have key data about your customers, such as their email address, phone number, and even their Facebook and Twitter IDs. Another essential task is to remove any duplicates and errors.
You should be aware, however, that you are not allowed to create databases containing information about racial origin, political opinions, religious or philosophical beliefs, physical or mental health, criminal convictions, or sexual orientation.
You then need to set your goals based on your marketing strategy. For example, if you’re focusing on customer retention, you’ll want to find out more about each customer by identifying their preferences and behaviour, such as their favourite products and preferred payment method. On the other hand, if you’re prospecting for new customers, you’ll use your database to target high-potential profiles.
2 – Run an RFM ranking
Are you familiar with RFM rankings (Recency, Frequency and Monetary Value)? This method enables you to determine buying cycles based on the frequency and value of each new order. Be sure to use this information to highlight any changes in your customers’ habits. Analyzing the results of each marketing campaign is a vital step: by understanding and fully exploiting your customers’ responses, you’ll be able to fine-tune your future campaigns.
It’s also smart to segment your database into small, medium-sized and large customers, based on the sales and profit generated by each one. Through long-term tracking, you can measure the evolution and quality of your database.
Scoring is another useful technique to adopt. This involves giving each user a score based on criteria such as age or income. Your targeting will be all the better for it!
3 – Describe the profile and potential of each customer
At this stage, it’s important to draw up a detailed picture of each customer. By maintaining information about their preferences, motivations and behaviour, you can continue learning more about them. For example, let’s suppose a jeweller has just sold a silver wedding anniversary ring. This time next year, he can offer this customer another silver model in the right size, or he can suggest similar products.
Another way to monetize your database is to promote other advertisers to your contacts. So, in the above example, the jeweller could recommend a particular florist to his customers, thus monetizing his database.
4- Fully leverage your customer data
For each group of customers, you need to adapt your campaigns to take full advantage of your database segmentation. For instance, if 70% of your ‘small’ customers buy a specific product or service, you can increase this percentage further by launching a special promotion.
If you want to target several groups of customers, you’ll need to bring together all the information needed to launch appropriate marketing campaigns. For example, your small customers may be interested in buying a high-end product, while you’ve been pushing them towards low-end products.
5- Rent or sell your database
Selling your customer database is highly inadvisable. It may end up being reused several times over, then sold on to third parties without your consent. However, we do recommend renting out your database, as this gives owners an extra income stream which helps them recoup the cost of maintaining and managing their database.
Also bear in mind that your database needs to be large enough to attract the interest of advertisers. Your database must contain at least 100,000 to 200,000 BtoC contacts before you can consider renting it out.
If these conditions for renting out your database seem somewhat restrictive, we recommend that you become affiliated with a platform. With Kwanko’s NetAffiliation , which has a publishers’ network of about 170,000 websites, you definitely won’t miss out on any big campaigns… And there are other benefits too: you can choose which mailouts you want to be included in, and can send emails without disrupting your ongoing campaigns. It’s a triple winning formula!
If you liked this article, you can contact us to find out more . Check out our performance marketing solutions and lead generation campaigns as well as NetAffiliation, our affiliate marketing platform.