Guest post by Nick Rojas.
A form of direct marketing, database marketing uses business and consumer databases to generate targeted recipient lists. Through various enterprise data sources and marketing technology tools, this practice leverages consumer and business user data to deliver relevant, effective, and personalized messages to both existing and potential customers/clients.
What distinguishes database from direct marketing is the awareness to the analysis of data. Emphasizing the use of statistical techniques, database marketing aims to develop models of customer behavior. This is then used to select the recipient list for communications.
As a result, database marketing tends to put a heavy reliance on data warehouses to incorporate insights from a greater variety and amount of data.
Database Marketing Types
There are two general types of database marketing: business and consumer. The main difference, obviously, is their target group; business data and consumer data. But the format, frequency, and focus of messages also differ between business and consumer audiences.