Should You Outsource Database Marketing?

  • April 21, 2021
Reasons for outsourcing database marketing

More often than not, businesses hire third parties for carrying out marketing activities. But a new change can be seen at the business forefront. Many businesses are also looking to outsource database marketing, analytics, and marketing operations. That said, database marketing is the new game-changer.

360-degree customer reviews, real-time insights, actionable data, and personalized marketing strategies – these influential words are just a few reflections of database marketing.

Database marketing, however, builds a deeper connection between businesses and clients. It involves focusing on client’s data collection (such as transaction histories, contact details, customer support queries, and a lot more). These insights are then used for devising personalized marketing strategies to attract potential clients and retain current ones. The end result is to achieve business growth.

It takes dedication and high-end expertise to dive into selecting and implementing the right database marketing techniques for delivering exceptional marketing results. This is one of the reasons why businesses are found answering this question: should you outsource database marketing?

In this post, we’ll explore if outsourcing database marketing is the right choice for businesses.

The insights

Database marketing makes a business more adaptive to change and fastens the process of development.

So, what is the reason for which businesses outsource database marketing, and what percent of B2B companies outsource sales marketing? These insights will clear the picture:

  • 59% of businesses opt for outsourcing as it helps them cut costs on core processes
  • The outsourcing market has grown to USD 92.5 billion in 2019
  • A study reveals that outsourcing helps businesses focus on their core competence
  • Businesses are giving priority to cost reductions as the new outsourcing trend

The best bet can be to outsource database marketing

Businesses consider database marketing as a critical tool in their strategic planning. If done the right way, database marketing can help enhance client satisfaction, and thus, the result will be longer-lasting clients. Besides, it would boost profits and revenues.

Outsourcing data management is a trend that’s taking place at a faster rate in B2B environments. Those businesses that aim to maximize the usefulness of their client data are opting for data management outsourcing.

But should you outsource database marketing?

Here are a few reasons how it can pave way for businesses to yield the desired marketing results.

Specialist expertise

If a business wants to outsource any functional area, it needs expertise. Sometimes, it’s difficult to hire the right pool of candidates or train them. Database marketing also falls in the category of those functional areas.

Remove the risk

For database marketing, a business needs to work on data analysis, data management, organizational design, email marketing, profiling, campaign management, and other areas that need special consideration. Since database marketing continues to evolve, it will need adaptive thinking and flexibility to ensure maximum benefits. Hiring a specialized team is viable

While choosing the right database marketing systems can be a big step, it can also prove to be quite risky. Businesses have the option of getting systems off the rack or having one customized according to their needs. Database marketing has multiple aspects due to which it becomes a risky decision and requires a considerable amount of time.

Database systems can fulfill numerous requirements of a business, but at the same time, not getting it right can cause businesses a huge amount of money as well as the loss of time. Not only this but it can also result in devising mediocre marketing strategies. If a business outsources the operational management of its database, it will get the system from the outsider team as per its need. This will eliminate the probability of risks associated with the implementation of database marketing systems.

Extend your teams

The digital or marketing teams usually have someone who has experience in database marketing and also knows how to manage it when it’s particularly a busy time.

For instance, when a business needs to create email campaigns, it may turn out to be an exercise in futility if it simply cannot make the best use of its data.

An outsourced database marketing team becomes an extended team which means a business has a group of committed people waiting to fulfill the next order.

Recruiting all the required skills can be a hassle if businesses have a limited budget. Therefore, an organization should choose an experienced team that not only possesses all the required skills but can also make effective use of them. This will prove to be easier than hiring someone on a full-time basis.

Stay current

Sometimes, you have to reinvent the wheel of fortune, or in this case, the wheel of database marketing. An outsourced database marketing team can bring fresh ideas and ensure best practices from across the industry.

Database marketing agencies have the latest methods of carrying out email marketing. This can work wonders for a business. Leaving the job to experts is the best way forward for your organization. They’re the experts at this since it’s their day in and day out job.

This is also beneficial because an agency will have worked with multiple clients and will know the sure-fire way of managing database results quickly. They’ll know about all the pitfalls to be avoided. In this manner, they can help you deliver ROI in the optimum timeframe.

Work on your staff

When outsourcing database marketing, it might seem that upskilling the staff is a redundant task. A common misconception is that there will be no investment in enhancing the skills of the staff, and they’ll remain oblivious of the new development in the organization.

However, this cannot be farther from the truth. Many database marketing agencies also carry out training as part of their package and can train an in-house member to be an expert on database systems.

Also, a database marketing agency doesn’t have to be a permanent solution. By picking up knowledge from them, a business can achieve immediate results.

Improved results

A carefully outsourced database marketing team will take care of the results and work on demonstrating its value. Its job will be the implementation of the database marketing techniques that are trending. This will lead to improved results. Plus, you’re binding them to be accountable to the responsibilities while delivering optimum results to your business.

The team will also provide progress reports without feeling the need to give it a positive spin. This can happen if the progress report were to be presented by an internal manager. Hence, this is a good way to improve accountability and boost the results.

Flexibility

An outsourced database marketing can offer its clients the opportunity of picking up any relevant package. Businesses can create a customized database based on their preferences for training, systems provisions, reporting, data analysis, and segmentation.

This also offers businesses the choice to get extra options when they’re facing rush hour or peak times. They don’t have to go through the hassle of recruiting additional staff for undertaking a database marketing job. The seasonal campaigns can easily be managed by the agency.

Database marketing offers businesses a lucrative opportunity for flexibility as they can choose full or partial outsourcing. This flexibility is most needed since a business doesn’t have to spend extra time and expertise while facing the risk alone.

The takeaway

Businesses are concerned about how to get the most out of database marketing. To maximize the finest outcome, an organization must see all the options available. Then, it can outsource database marketing to a partner and reap the benefits. The question should now be changed from ‘should you outsource database marketing?’ to ‘when to outsource database marketing?’

For this purpose, managers need to be experts who should know which supplier will deliver the best-integrated network. They should consider the suppliers not just as mere contractors but as business partners who will play a key role in taking the organization to new heights.

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