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What is Email Database Marketing?

Osmand Vitez
Osmand Vitez

Email database marketing is when companies send targeted electronic messages to customers, individuals or businesses in hopes that consumer purchase will increase. Companies acquire email addresses through websites, comment cards, surveys or through purchasing the addresses from a third party. Email database advertising leverages technology already in use by companies and consumers for generating leads and create direct marketing channels competitors may not be using.

Generating emails lists is not very difficult in today’s business environment. Many companies require customers to create accounts or enter email addresses when using the company’s website. This forces customers to give the company an email address that can allow for email database marketing at a future point. In order to maintain a good reputation, many companies provide customers with an opportunity to opt-out, removing their email from the database, or limit the amount of emails they receive from the company. Companies may also create policies that restrict the sale of customer email addresses to outside firms.

As part of "netiquette," it's important that email marketers treat online interactions the same as those in the real world.
As part of "netiquette," it's important that email marketers treat online interactions the same as those in the real world.

Using email addresses for marketing and advertising can increase the opportunity for companies to spread their message. Many individuals have mobile devices that allow them to receive information in a near real-time format. Companies can maximize marketing opportunities by sending emails during peak shopping times. For example, a company can work with a survey company to determine when most individuals are shopping at stores during the day or evening. With this information, companies can set up an automatic marketing email in an attempt to reach consumers during these times. Adding a coupon can increase the chances that a consumer will make a purchase at the store.

Part of an email marketing strategy might include emailing customers coupons during peak shopping hours to encourage shopping.
Part of an email marketing strategy might include emailing customers coupons during peak shopping hours to encourage shopping.

Another option for email database marketing is to break consumers down into various demographics. For example, asking consumers to provide specific information such as income, location, age, sex, family size and other statistics allows the company to tailor email marketing messages even further. This ultimately allows a large organization or company to create regional messages for marketing and advertising.

Many individuals have mobile devices that allow them to receive information in a near real-time format.
Many individuals have mobile devices that allow them to receive information in a near real-time format.

Email database marketing also lets companies to create simple, form-style message used in repeatedly. By creating a few basic templates, the company can then insert the email message easily using a computer formula. This cuts down on the marketing personnel needed to create and develop messages. The electronic form can also contain tracking information that lets the company know what information is most sought after by consumers. Through this data tracking, companies can further enhance future email marketing messages.

Discussion Comments

Melonlity

@Soulfox -- estimates generally state that spam accounts for all forms of email. If that estimate seems a bit high, consider this -- most Internet service providers have gotten good at controlling spam by filtering out before their clients even see it and blacklisting domains known for spam so that mail from those servers aren't accepted at all.

The problem with this is that spam makes it tough for legitimate marketers so reach people who have signed up to receive emails from them. And, yes, there are a lot of legitimate marketers out there that send newsletters, coupons and other information their clients want.

It's an ongoing problem. Separating the bad apples from the good ones has been a challenge for a couple of decades now.

Soulfox

There is a major problem with marketers who purchase email addresses from third parties. When you hear people complain about spam, they are often talking about emails that come from these companies. They've never had any dealings with them and are annoyed when they have to sift through what are effectively advertisements to get to emails that they want.

What percentage of email is actually spam and what efforts are in place to get rid of it?

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    • As part of "netiquette," it's important that email marketers treat online interactions the same as those in the real world.
      By: a4stockphotos
      As part of "netiquette," it's important that email marketers treat online interactions the same as those in the real world.
    • Part of an email marketing strategy might include emailing customers coupons during peak shopping hours to encourage shopping.
      By: karelnoppe
      Part of an email marketing strategy might include emailing customers coupons during peak shopping hours to encourage shopping.
    • Many individuals have mobile devices that allow them to receive information in a near real-time format.
      By: tinx
      Many individuals have mobile devices that allow them to receive information in a near real-time format.