Database management should complement online marketing strategy

By SHAHEERA AZNAM SHAH / Pic by AFIF ABD HALIM

Malaysian companies lack the ability to adopt online advertising strategy, such as marketing automation, that can potentially boost any business.

A survey by online marketing platform GetResponse revealed that only 19% of its customers are implementing marketing automation in their business strategy.

“We have about 300,000 small and medium enterprises and 50 enterprise customers, and the majority that rejects marketing automation service are the smaller and traditional companies.

“We have noticed that our customers do not fully understand the system. It would take time to convince a company to alter their business strategy,” GetResponse Malaysia country head Melissa Lee told The Malaysian Reserve at a media briefing for the company’s “South-East Asia Email Marketing Benchmark” report in Kuala Lumpur yesterday.

Based on the report, Lee said that Malaysian companies are seen to possess the highest number of irrelevant database.

“We have noticed a discouraging number of irrelevant databases among our customers, which mainly comprise fake email address and third- party email address, which has limit in user’s active period. “However, companies still want to keep these email addresses in their database because of the vanity of it. It is easier to say ‘I have one million worth of database’ than to actually realise how many of them are actually responsive,” she said.

Lee added that small and traditional companies are expected to ignore the importance of having “cleaned” mailing database, which could put the effectiveness of a marketing strategy at risk.

“Marketing automation works as a tool of segmentation through a conditional work-flow, where specified action will be applied according to the recipient’s response.

“For example, if a company has only 10% of open rate from its one million database, the system will manage the remaining 90% and find out their level of engagement with the company.

“Eighty percent of our customers do not have a ‘cleaned’ database and we are continuously working with them to ensure that they have an effective marketing plan,” she said.

According to the report, the state of local database also affects Malaysia’s open and click-through rates, which had registered significantly lower than other countries.

“Malaysia records 16.52% in open rate and 3.39% in click-through rate in the email marketing, which are the lowest among the respondent countries.

“This scenario is also the result of having an untended database and it is widely seen in Malaysia and Indonesia. We found that the trend is close to none sophisticated countries such as the US.

However, Lee said that GetResponse has been receiving an increase in marketing automation service requests as local companies are slowly adapting to an innovation marketing operation.

“We have acknowledged that 40% of the entire Malaysian businesses have already adopted the marketing automation this year, due to the rise of artificial intelligences.

“It used to be a physical job where people are actually needed to think of how to optimise an advertisement or a campaign, but now it is automated.

“In Malaysia, the interest is slowly growing, but we have been receiving request, especially from the enterprise level,” she said.