What comes to your mind when you hear the term database? Instantly you relate it to an unending list of names, telephone numbers, addresses etc. But to people in managements, sales, marketing, and customer relationship building, a database is much more than a list of names and addresses. For them, it is a tool to increase sales and profit and also a means to create loyal customers.
A customer database as the name suggests is a database especially maintained for customers. It provides many opportunities for business growth and targeted marketing. First of all, such a database helps you in building a good rapport with your customers. By retrieving information such telephone numbers, e-mails, and date of births etc., you can wish your customers on their birthdays or on anniversaries. An unexpected wish goes a long way in building up a relationship. Better still, you can offer special gifts on buying or discounts on products on such occasions. This way you can create customers who are loyal to you while at the same time selling your products.
Again you can send promotional sales and offers from time to time to your customers through their e-mails or phone numbers. You can target specific customers with such offers. For example, you can choose a customer who has not had business with you in the past one year. Again, you can point out the customers who do not show interests in your products in spite of promotional campaigns. In future, you need not waste time and effort on such customers.
Again, a customer database enables you to target specific customers. You can find out who constitute your most profitable customers and their attributes such as geographical location, age, sex, etc. By deducing these facts, you can find out your targeted audience. Having done so, now you can effectively, inclusively, and precisely market your products to them. You also have a golden opportunity to build up a good customer relationship with this elite group of customers.
Therefore you should always maintain a user database if you want to increase your sales and business returns.