The Importance of a Customer Database for Business Success
To find out customer data, each company must collect information and store it in a database that can be used to carry out database marketing. The customer database usually contains all customer names, addresses, transaction history, and even demographic and psychographic data (such as activities, interests, and opinions). If utilized to the maximum, that information can provide many benefits to the company. Companies can rank their customers according to their last purchase, frequency and monetary value such as Recency, Monetary Value, and Frequency and only send offers to customers who have the highest transaction value. Database marketing is a process of building, maintaining, and using a customer database to transact and build relationships with customers. That is one of the important database customers for the success of a business.
Benefits of a Customer Database
When starting a business or business, often business people feel confused about where to distribute their products. This is usually caused by their unpreparedness in determining the area or market to be addressed. Another possibility is that these business people already have large databases, but they are not optimally processed because they only focus on finding new customers and forgetting existing customers or old customers. An accurate and complete customer database can be likened to a powerful weapon for business people. Because the customer database has many benefits, including the following:
1. Customer database as sales direction
The customer database can be used as one of the sales directions so that the product can enter the right market. Sales activities will run quickly and efficiently if the sales force has been equipped with a prospective customer database and is the target market for your business.
2. Customer database as an illustration of market potential
A complete and accurate database will greatly assist business people in determining market potential based on area or age group. Thus, business people can analyze the right product for the right buyer. If the potential for sales in the intended area is still quite low, then promotional strategies that can boost business sales can be immediately determined.
3. Can be used to record a customer blacklist
As a business person, don’t waste your time selling products to the wrong people. With the database you have, you will find out which customers are having problems making buying and selling transactions. A customer you can enter into the blacklist category due to certain reasons, such as fake customers or customers who have problems when making payments.
4. To analyze sales
A good database will help business people in offering new products to new customers and old customers. In addition, by using a customer database you can also analyze the causes of a decrease or increase in sales. Thus, you can immediately determine the strategy needed when sales have decreased.
5. As a means to communicate
If a businessman already has a customer database, then the next task is to establish communication with customers in person. So there will be closeness between the customer and your product. This is one of the keys so that customers are more loyal to the products you offer.
Manage Customer Database
Customer database has a vital role. With a database that is owned, every business or company can conduct analysis to dig up information about customers. For example, to look for customer interests and preferences. Then to reduce the distance between businesses or companies and consumers, companies can provide the latest information about the products being sold, either by email, telephone, and so forth.
Given the importance of customer databases, managing databases for these purposes should not be done alone. As a business person, you can recruit specialized staff to manage customer databases and create events or programs to maintain closeness with customers. For example by giving congratulations on consumers’ birthdays, providing limited edition products for VIP customers or forming a community. These ways you can apply to establish closeness with customers. By providing a personal touch in communication, it will make customers feel valued and become an important part of your business.