Marketing and database play an important role in developing a prosperous business. Let’s check how to make them your faithful helpers!
Marketing is a huge sphere that covers too many activities and plans, which have a direct impact on business development. It correlates with sales, logistic, finance, etc. However, not everyone pays close attention to a marketing campaign as marketing is still believed not to contribute to development and improvement of business services.
Speaking of database, it is considered a key indicator of success, as it is meant to be a quantitative index of loyal customers (as well as of disloyal ones). Its characteristics allow to determine a target audience of a business. It also gives a possibility to broaden measurements and set particular requirements that will correspond to needs and preferences of potential customers, according to an opinion of business expert of cheapest essay writing service.
Nowadays, there are many secrets of successful marketing management that can be found on the Internet. At the same time, not everyone is able to see a direct correlation between marketing and database, which in its turn can be considered the cut and thrust of business development.
Let’s try to figure it out in more detail.
This is the main operational indicator. It allows you to measure the internal effectiveness of the campaign. Moreover, this coefficient can be tied to its value. The response rate is the percentage of customers who accept your offer (or agree to use your services/products).
For example, you want to make a marketing proposal. Let’s say you aim to inform 10,000 people about a promotional proposition or discount (by mail, email or phone), and 1,000 people accept this proposition. Then the response rate is 10%.
Let’s assume that the cost of an e-mail or phone call is $10. We send 1,000 emails, so the marketing costs cover: 1,000 emails × $10 = $10,000.
However, only 100 people accepted the offer (not just opened your email and saw what you had written to them but agreed to use your service or product). So, the cost of attracting one client is: $10,000 / 100 = $100.
Thus, the cost of attracting a client is the total amount of marketing expenses divided by the number of clients who accept the offer. Such correlation with database could help you determine the particular amount of expenditures that are planned to be spent on attracting clients.
Let’s take a typical situation as an example. It is so familiar to all of us.
So, I am overweight. But I know a simple recipe for losing weight quickly and without additional efforts: I need to consume fewer calories than can be burned by exercising. Recently I have found a free application “Lose It”, which obviously makes it easier to count calories.
My “budget” was only 1,600 calories per day. It turned out that 1/3 of my diet consisted of chocolate cookies. Not surprisingly, I had to decide whether I should continue eating chocolates or find the way to change my habit. I found out that my favorite strawberry ice has only 160 calories, and this number suited me.
I believe that if you can measure something, you can control it.
And as a result, measurements help improve the results of marketing because they clearly show what works and what does not. In this case, you shouldn’t be afraid of calculating the results of marketing activities. Even if the numbers do not impress you, still you will find out that this approach does not suit your business. Otherwise, all your efforts will be directed only to generating marketing plans, but your sales department will not appreciate this.
No Final Destination
Nowadays, digital marketing is becoming more and more essential for any business. Such phenomenon is caused by many factors, including globalization, growth of e-commerce, popularity of modern gadgets, etc. In this regard, business has to encompass one more new space – and this space is called the Internet.
The Internet is a new platform offering many opportunities to reach success. That is why more and more entrepreneurs are immersing into digital marketing by promoting their products and services to a huge number of users.
Search advertising has become one of the most powerful instruments for achieving this goal.
Today, search advertising takes a significant part of marketing budget. The main problem of search marketing is attribution. In other words, when users carry out a search, 100% of the weight (significance) is assigned only to the last click they make before buying (or the click which leads to certain desired actions).
The budget for Internet marketing should be proportionally distributed according to the supporting keywords. Analysis of the flow of clicks allows you to determine more accurately which words in the search really affect the final decision of a user.
And again, database is aimed at helping you determine the way people start their search. All these keywords are bound to human reasoning that anyway can be tracked by means of collecting data. So, the more you know, the higher the possibility to reach your customer is.
No Equal Customers
Equalizing in marketing and sales leads to the loss of really important customers. There is one interesting example that proves equalizing to be the wrong action.
Imagine an international company engaged in the B2B market that has a huge sales staff. The sales department conducts an analysis according to which 8% of B2B customers provided the company with 93% of revenues. However, the sales managers still treated all customers equally.
Obviously, 8% of clients were much more important to the company than the other 92%. And if one client of those 8% left, the consequences would be catastrophic. Even all those 92% would not able to replace only this one client.
In this case, it is better to agree that not all customers are equal. Therefore, it is high time to develop a marketing and sales strategy, taking this fact into consideration.