Accurate and active customer databases essential for online marketing success

Jacques van Niekerk, CEO of Acceleration, explains: "Most companies have a good idea of who their customers are and will likely have e-mail addresses for them. But, just because you have a person's e-mail address, it doesn't imply that they want to receive unsolicited marketing messages. An effective way of building a customer database is opting people visiting an organisation's website into a database through List Generator or Preference Centre forms on your site. It's here that you can get buy-in from customers by making it attractive for them to join a mailing list," he says. "A company's existing customers are likely to visit its website and there's a lot of organic traffic over the Web – this can be built into new or repeat business prospects."

Customers contained in any database used for e-mail marketing should be on the list by consent. Says van Niekerk: "The best way to make sure customers do actually want to be on your mailing list database is to get them to tell you – twice. This is called the double opt-in method. They have to check a box on the website saying they are happy to receive marketing material via e-mail. Then they have to confirm that choice. It's unlikely that anyone would go through that process without really wanting to hear from that particular organization. It's also important to have an unsubscribe function in case a customer's needs change." Van Niekerk says it's not a good idea to buy an existing database from a third party. "Most companies have unique requirements in terms of who they send marketing e-mail to and it's better to have a list that's generated from within."

Creating an accurate database is one thing, maintaining it is another – and equally important. "Using electronic tools, a lot of intelligence can be built into databases. Feedback from customers is important and should be built into their preferences around e-mail communications. For instance, find out whether they want to be e-mailed monthly or weekly. Then communicate with them that way."

A key differentiator between database driven communications deployed through email and other channels, such as post, is that email allows for greater customization and automation. Automating email communications can be highly effective and can be scheduled in many ways, either on an event, time or activity based variable. For example an email can be triggered to a customer on the anniversary of his service contract, or to notify them of a renewal deadline. E-mail marketing is a tremendously important and effective tool in the right hands but it has to be done well and to the right audience. By creating and maintaining an accurate database, organizations have a much better chance of getting the right message to the right people at the right time," says van Niekerk.