May 11, 2021

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9 Tips to Improve Return on Investment capital with Database Marketing

7 min read


If we start with the definition: It is a form of marketing in which the products and services are promoted to the targeted audience using the data and sending customized messages to increase ROIC spent.

 Database for any type of product or service promotion can be categorized into two categories in general

1.    Business Database (for B2B Deals)

2.    Customer Database (for B2C Deals)

If we go deeper into the understanding of how different companies categorize their database segment-wise, either it comes under the above two categories or it will be wholly customized as per the requirements. It may vary from company to company.

Types of Database Collection

To start with Database collection we have to check from where the companies collect the data. In general standard practices, a source of Database collection is categorized as follows:

1.    Verified Data or Subscribed Customers

2.    Non-Verified Data (i.e. Customer’s leads which are not subscribed)

3.    Bulk Data Collection

Now let’s see how the Database is collected as per above categorization to Increase return on investment capital (Increasing ROIC of database marketing)

1.    Verified Data or Subscribed Customers

○     It is the collected data from the online CRM or any form of your website where the user itself subscribes to your regular updates, newsletter, Inquire for any product or service, etc.

○     It has the highest open rate and conversion rate in comparison with other categories for your product or service.

2.    Unverified Data (i.e. Customer’s leads which are not subscribed)

○     Every CRM or Business development person in any organization makes this segment of the list of the leads to which they will be targeting for the promotion of products and services.

○     As compared to the verified data this category has a low amount of conversion rate.

3.    Bulk Data Collection

○     It is mostly extracted by the Database selling companies, It can be collected and filtered through various terms i.e. Pin Code, Purchase behavior, Industry-wise, Nation/City/State wise, etc.

○     If the database is of active users and targeted audiences, it can provide a good conversion on a quantity basis. Its conversion rate may be low as compared to Verified user’s data but quantitatively it can generate a good amount of revenue.

Hence as per the above brief of “Types of Database Collection” to Improve  & Increase ROIC in marketing campaigns, the sources of data collection depend upon organization to organization.

9 Tips to Improve Return on Investment capital with Database Marketing

This is tips helps you to improve the return on investment with capital, if you understand the whole concept of database marketing

1.   Expand your total addressable market (TAM)

During the strategy building to increase ROIC using database marketing or increasing ROIC of database marketing you have to identify your potential audience and area to target.

 By knowing your Ideal customer and analyzing the total addressable market you have to expand your target audience market, it can be area wise or segment-wise or anything as per the strategy and potential audience.

Hence if we increase the target market and then it will directly affect our results and help in the conversion rate optimization, return on investment capital improvement. So first you need to expand your total addressable market.

2.   Collect More and Relevant Data

Now after you have decided on the total addressable market (TAM), the next step is to collect the data accordingly, hence to extract the relevant data as discussed in the 3 types of database collection methods previously you have to check whether which type works for you.

So if your strategy includes the subscription-based model for the verified database of subscribed users.

Hence ideally verified database collection model will take time and if you want to start instantly in no time then you can go with the other two types of data collection for your marketing strategy

Which will be Unverified data or Bulk data collection and for that either you can extract the customized data from the internet or purchase the data from database service provider company then start with your marketing campaigns

3.   Segmenting the list

After the data collection, it is very important to segment the data as per our target audience demographics.

The general practice to segment the data involves terms like purchase interest, profession, industry, sales revenue, etc.

If we go deeper into the segmentation of the data many terms may be involved in it and it will be different as per the respective organization.

Hence segmenting the list and planning out the customized strategy according to the respective list will strike more to your customer mindset and hence your leads and conversion will also grow to a very good growth rate.

4.   Optimize Lead Capture

Now when you have collected the database for your marketing campaign, then a proper strategy should be there in the form of a marketing funnel that will define the process of getting leads.

The best way to improve return on invested capital is to optimize the lead capture procedure so you can generate more leads than in normal scenarios. Hence you have to brainstorm and plan accordingly.

Business Development person’s and other marketers optimize their lead capture by addressing the interests and pain points of target customers in the marketing campaigns.

Also if you provide any value to the customer in your marketing campaign then they will show more interest and you will find the increase in leads and then in conversion.

5.   Decide the best channel to market

After working on the Lead generation strategy to optimize lead capture.

 The main thing is to decide which method or channel you should use to market your brand. Also how to promote products and services among the target audience Identified.

Here are some examples of types of channels you can use to market the products and services.

              i. Email Marketing – You can shoot the mails segment-wise to the collected database of Emails. You can reach your target customers with this method. Also, you can send regular updates about your brand to the audience. Hence they get notified about your brand.

            ii.  SMS Marketing – To the collected Mobile no. data of your targeted customers you can send promotional messages through SMS marketing. In today’s era, people don’t give much attention to SMS marketing. it is cheaper as well hence it can be used for brand awareness.

            iii.  WhatsApp Marketing – As we all know WhatsApp is one of the most engaging platforms by users all over the world. Hence if you market your product and services with the help of WhatsApp as a medium, then there will be a good probability of engagement and revert.

6.   Customer Retention strategy

As defined in the name as well, the customer retention strategy signifies to retain your customer with your Business relations and good service. Customer retention is an art, as first, you have to plan well, sell your product or service well.

But if you become an expert in customer retention then your marketing strategy will lead you to a handsome amount of recurring revenue generation.

Once any customer purchases any product from your brand, he/she seeks a good service from the brand.

Hence if you serve well to your customer you can cross-sell your other products.

 Also, you can resell your existing products on a recurring model to a happy customer. It helps in the word of mouth publicity of your brand.

7.   Follow-ups, Re-marketing, and closing strategy

If your customers are happy with your service, you can re-target them using the re-marketing strategy. So your customer will receive regular notifications about your brand.

Follow-ups and Closing strategy is a must in any deal. A good technique of follow-ups with any customer encourages them to buy your product or services according to their psychological thinking.

 But if you are not good at taking follow-ups then if your customer is even interested in your brand they can forget about it and purchase products from any other brand.

Hence it is most important; to improve return on investment capital you must have a good remarketing and follow up strategy.

8.   Loyalty Programs or Offer strategy

You may have heard about the loyalty programs for the customers.

Many brands use this strategy to make their customers engage with their brand.

For this, you can first research on the similar brand that how they are doing loyalty programs or Offers for their existing and new customers.

You also have to research how your competitors are using the marketing strategy to improve & Increase ROIC.

Then you can develop a plan which loyalty programs you would be doing. And how you can be aware of your existing and new customers about your brand’s programs and offers.To capture their interest in your brand.

9.   Customer service is the key

With the help of customer service, your brand builds a relation with your customers. Hence it is very much important to have a good business relationship with your customer.

This can only be possible when you will provide good value to your customers.

It will also help in increasing your leads and sales.

It will indirectly affect in increasing ROIC with the help of worth of mouth publicity through your happy customers.


Hence as discussed above regarding “9 Tips to Improve Return on Investment capital with Database Marketing”, you can accomplish better, increasing ROIC and conversion if you follow every tip explained in this article.

Author Bio

Fehmeez Ahmed

Fehmeez is fueled by his passion for understanding the nuances of cross-cultural advertising. A maverick with a mind of his own, he comes up with novel ways to provide the best possible outcome. A strong leader who consistently takes the most challenging projects builds exceptional teams and drives significant ROI. Recent results include a 300%+ increase in lead generation, a 69% boost to sales figures. His hunger for knowledge and determination to turn information into action has contributed to his most recent success at KAP Enterprises