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What is a Database Monetization Campaign?

As you plan the marketing strategy for the year, don’t forget to include a reactivation campaign in the mix.

Database Monetization Campaigns are a must for businesses of every size and industry, and for good reason: they can result in big, fast jumps in revenue and profitability!

Here’s what you need to know:

What is a Database Monetization Campaign?

You may also hear DM campaigns called re-engagement campaigns. This is a campaign with the primary goal of marketing to people who previously engaged with your business but haven’t in a long time. It can include people who signed up for your newsletter, bought something, visited your website and created an account, or any other action.

Essentially, you want to get those previously active people to become active again. Now that you understand what a DM campaign is, why do you need one?

Why use Database Monetization Campaigns?

Increase Revenue and Profitability

As stated above, customer reactivation campaigns often result in big, fast jumps in revenue and profitability. Simply reselling to dormant customers will improve profits. Results will be even better if you manage to up-sell them as well.

And because these are existing relationships, your marketing costs to generate these sales are typically much lower than the costs of acquiring a new customer, which means more falls to the bottom line.

Improve Client Relationships

During your Database Monetization Campaigns, you are also likely to strengthen the relationships you have with existing customers.

One of the best ways to do this is to figure out why customers became dormant in the first place. You can then use that knowledge to make those customers active again. At the same time, you can change your strategies or processes to prevent currently active customers from becoming dormant for the same reason.

Gather Important Data

As with any marketing campaign, your Database Monetization Campaigns will also be an incredibly useful source of data.

You can use it to learn why customers become dormant and prevent it. You can take this to the next level and get specific information on why they prefer certain competitors over you. Use this data to your advantage both when winning them back and when planning for the future.

Why do Database Monetization Campaigns work so well?

You Already Put in the Effort

One reason to use a Database Monetization campaign is that you already put in the effort to reach these people in the past. While you don’t want to fall for the sunk cost fallacy and keep putting money into a losing strategy, a reactivation campaign can ensure that initial time and financial investment were worth it.

They Are Already Primed

Consider the fact that a Database Monetization Campaign will target people who have already interacted with you. This means that they have already taken the important step of reaching out in some way. Essentially, they have already expressed interest.

The fact that these people are already aware of your brand and your offerings makes them easier to convert than a brand-new customer. Another way to put it is that these people have already progressed a step or two (or more) on your sales funnel. Encouraging them to go further along the funnel makes more logical and financial sense than starting over with new people.

You Already Have Data on Them

Depending on how these dormant customers interacted with you, you likely already have valuable data on them that you can use to help with reactivation. The most important piece of information will be the past purchases. If they didn’t buy anything, you can use data on what they placed in their carts or on what items they browsed.

Using this data lets you create a highly targeted marketing strategy. For example, you can target them with emails or display ads focusing on related products to their initial purchase.