If you’ve been spending money on marketing then you probably have a database/list or two of existing customers, past customers, leads that haven’t converted yet, or a newsletter that you regularly send
And that is awesome!
However, problems arise as your list/database gets bigger and bigger, and you’ll have to spend more and more money just to send out emails or SMS with diminishing results.
In this article, I’m going to share with you a little-known now the secret of customer database segregation and how you can leverage it to save thousands of dollars and get better results from your current databases/lists.
What is Database Segregation
Before we talk about how you can save money by leveraging database segregation. Let me explain what it is first.
Database segregation is the practice of keeping your database healthy by preventing or managing database decay. The goal is to make sure your database is clean of any bad contacts to prevent your database from leaving money every month.
Why Your Database Is Leaking Money Every Month
On average, 5-8% of contacts in any business’s database will decay month on month due to poor management of their database.
This is largely due to businesses simply don’t know how or don’t have the process in place to re-engage with their database or clean up the decayed contacts out of their database…
But what does this mean?
The idea of decayed databases refers to data quality deterioration. This means a percentage of your database is no longer valid because some of the contacts have changed their email, changed their phone number, or simply stopped paying attention to your emails or SMS.
But why does it matter to you?
Well, it matters 3 fold.
- If you’re sending emails or SMS or running some kind of long-term drip sequence to your database then each email and SMS you send costs money. I know it’s not a lot, a fraction of a penny but imagine if you have a database of 100,000 and on average you spend about $1,000 every month sending emails to your database, and 25% of them is wasted. That could add up to thousands of dollars in savings if you simply segregate your database.
- Database decay can heavily skew the results of your remarket or drip campaigns. If 25% of your database is filled with bad numbers, bad email, or non-responsive contacts, how can you accurately make a decision based on the campaign’s performance? Bad data equals bad decisions.
- Lastly, if you ever use your databases or lists to generate lookalike audiences for both Facebook and Google ads then you’ll want to feed the AI the best and cleanest data possible. This way Facebook and Google can more accurately generate better look-alike audiences for you.
How to Keep Your Database Healthy With Database Segregation
Still with me?
Now that I know what database segregation is and the importance of keeping your database healthy. Here are 4 practices that you should implement to keep your database healthy.
- Make sure you collect all necessary data at the get-go. Data such as last contacted, contact pipeline status, and when they last responded can help you keep your database healthy.
- Finding bad or wrong numbers/emails and removing them from the database.
- Run list reactivation campaigns to re-engage with the database or reactivate dead contacts at least once every quarter.
- Monitor your email or drip campaigns and promptly remove any unresponsive contacts from the database if they consistently do not respond.
Monitoring and keeping your database healthy can be time and resource-consuming as it requires constant supervision and modification. However, this simple practice can heavily reduce your overall marketing cost and produce better ROI for your business.
