Customer databases are a valuable asset for all types of business, especially if you’re eager to attract new clients and don’t wish to start from scratch. Typical canvassing methods such as cold calling, flyering or advertising could prove extremely expensive and cost-ineffective for growing your customer base, with at least 80 per cent rejection being a common figure. On the other hand, purchasing databases of customers who are more likely to be interested in your products and services could save you significant time and money.
This new data can either act as your core customer base, or supplement your existing database. But it’s not only the quantity of your data that will be improved by the new additions – the quality will increase considerably too, drawn from the most relevant customer demographics to the market your business is targeting. That means you’ll no longer have to spend as much time weeding out people in your data who are too old, too young or otherwise unsuitable for the type of product or service you’re offering – often turning around the 80 per cent rejection figure into 80 per cent success.
The buying and selling of intellectual property such as customer details is by no means illegal, as long as customers have agreed their consent. A typical way this is carried out is in the form of check-boxes when they make a purchase or sign an agreement with a company, where they can opt out of having their details passed on to other interested parties. While some people may view such trading of their details as a nuisance, and take steps to remove their names from databases, they could be missing out if the promotion you were planning on calling them regarding would be something that would improve their lives.
If you’re interested in getting involved in database marketing yourself, and selling on your own data collected over a period of time, you similarly need to ensure you are abiding by privacy laws. However, by avoiding digging any deeper than the details on your database – such as investigating the private lives of customers – you will be successful at avoiding potential lawsuits. Customers always have the opportunity to opt out of your database through the relevant channels.
Database marketing is not only a valuable asset for your own business, but can also put you ahead of the competition by attracting the largest and most loyal client base in your field, as well as increasing awareness of your brand.