Database marketing is a form of direct marketing focused on using statistical methods for analyzing consumer behavior, which underlie the choice of contacts for the implementation of advertising communication. Using mathematical data modeling, consumer behavior models are developed that enable a company to allocate marketing resources efficiently. Database marketing assumes that the company has the right to use information storage and the use of methods for collecting and processing data about potential consumers.
Client databases are divided into two types, depending on the type of clientele of the company: Client Corporate. Customer bases are used by companies that manufacture and sell products to the end consumer (B2C). Corporate databases contain technical information about companies that buy certain products (B2B), often more detailed. A high-quality database includes personal information about the client, as well as the history of interaction with him. The databases often include information about the client’s Internet actions, interests, preferences, and needs. Sources such as questionnaires, various applications, contests, subscription forms are used to create and fill the database.
In theory, direct marketing is possible without a database, but it would not be practical. The effectiveness of direct marketing directly depends primarily on the quality of the customer lists that form its basis. Due to the high costs, direct marketing often does not profit from the first contact with customers. Therefore, it is crucial to ensure sufficient data on these customers to send them further offers (and turn them into profitable customers). Quality databases are critical to developing customer-brand relationships by enabling marketers to identify the best customers in an organization, their value, and their needs and buying behavior. The application of database-driven methodologies aims to establish dialogue and obtain desired, measurable responses from target groups and individuals.