The Importance of Having a Customer Database

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Do you have one?

Or is your customer information hidden in lots of paper files?

If you don’t have a customer database then you are missing out on an effective marketing tool that will help grow your business.

Why use?

• Retain existing customers and build loyalty by providing personalised service and communication
• Expand sales with existing customers through cross sell and up sell
• Generate referrals from satisfied customers
• Follow and track potential customers easily

When implementing a customer database you will need to consider the following:

Information Requirements

It is important to consider what information you need from people now and what information you may require in the future. If you have staff then sit down with them and determine everyone’s information needs. It is important that you create a customer database that serves as many areas of your business as possible eg. sales and marketing.

Responsibility and Maintenance of the Database

If possible appoint one person within your business to be responsible for the up keep of the database. Your database should be frequently updated to ensure information is current, correct and customers who have requested not to be contacted are flagged or placed in a separate area.

Capture All Information

The main objective of a customer database is to grow your business. The more information you can capture about your existing customers and potential customers, the more effective your database.

Backup Your Information

Any computerised database needs to be backed up daily or twice weekly. Keep these backups in a safe place so that if your computer crashes the information can be easily reloaded.

Finding the Right Database System for You

You have a number of choices when developing a customer database. These include: designed in-house, designed and built by an outside agency or software that can be stored on your computer or via the web.

For small businesses there are a number of databases available on the market that can be purchased from a retail store or over the internet. These databases offer a standard way of capturing customer information, sorting information and producing reports.

Database Checklist

Before deciding on a database consider the following checklist:

• Who is going to use the database and what are the database’s features and qualities your business will need? Make a list of your information requirements and involve your staff
• Can information be sorted in various ways?
• Can the database generate personalised mailing labels, letters and other customised reports?
• Can the user change, delete or add fields of information?
• Do you require security functions eg. passwords to restrict access for different levels of use?
• Does the database require staff training on how to use it effectively? Databases bought off the shelf often come with a computerised tutorial or overview and support print material

If you have your customer information in a number of places, then perhaps it is time to consider purchasing a database for your business.