Database marketing is one of the most efficient and powerful ways to reach out to customers and promote your products or services. It allows you to target specific customers with tailored messages, which can result in better leads and higher conversion rates.
However, database marketing also comes with its own set of challenges that can be difficult to overcome. In this post, we’ll take a look at some of the biggest challenges of database marketing. Be sure to read on!
1. Data decay
In this case, the data becomes out-of-date and irrelevant, making it difficult to target customers with relevant offers. It can be caused by several factors, including data entry errors, the passage of time, and changes in customer information for example.
A customer or prospect’s profile becomes out-of-date anytime they change jobs, get promoted, move to a new address, change their name, change their email address, or make any other life change. According to a report, global data decay occurs at a rate of around 3% each month. B2B data decay occurs at a rate of 70.3% each year (source).
Organizations rely on customer databases for all sorts of important marketing initiatives, such as targeted campaigns, lead nurturing, and product promotion. However, if data in these databases become outdated or inaccurate, then the effectiveness of these initiatives suffers greatly. That’s why it’s so important to focus on minimizing data decay.
2. Data accuracy
Think about the last time you received a promotional email from a retailer – chances are, the email was based on your past purchase behavior. Retailers collect data on what you buy and when you buy it in order to send you targeted offers that they hope will persuade you to buy more products.
But while this type of targeted marketing can be very effective, it’s also prone to inaccuracy. A recent study found that approximately 40% of leads contain inaccurate information (source), meaning millions of dollars are wasted every year on inaccurate targeting.
The reason for this can be due to a variety of factors, such as inaccuracies in the customer data or changes in the customer’s preferences.
This is why accuracy is one of the biggest challenges for marketers – getting the data is only half the battle. Once you have the data, you need to make sure it’s accurate and up-to-date so that you can target your customers with laser precision. This can be a daunting task, especially if you are working with a large database.
Without clean, accurate data, marketers can’t hope to successfully target their audience and achieve the desired results. Inaccurate data can lead to wasted time and money.
3. Reacting promptly to customer data
It sounds like a no-brainer: as a marketer, if you have access to customer data, you should use it to inform your marketing efforts. But in practice, it’s not always so simple. It is challenging for marketers to capture, analyze, and act on customer information on a timely basis.
Whether it’s identifying when a customer is ready to buy or reacting quickly to changes in purchase behavior, getting your offers in front of customers at just the right moment is critical for success.
Fortunately, new technologies are making it easier than ever to get real-time insights into what customers want and need – so you can deliver the right message at the right time.
Businesses of all sizes can attest to the challenge of generating sales leads. However, this challenge can be alleviated with the help of a good database provider and some creative marketing.
At FunnL, we have a wealth of data that is updated daily and provides insights into millions of businesses across the globe. This information can help you target your marketing efforts more accurately, increasing your chances of success. Contact us today to get started on your lead generation efforts!