You need a customer database, here is why

When you start running your business, you might fall into the common trap of not collecting customer data.

This can be even more prevalent in bricks and mortar stores (without an online presence). It’s not just about the customer data like contact information that you need because the more information you have, the better you can market your products.

It starts with a commitment to collecting the information that will allow you to serve your customers better. Once you make that commitment, you need to implement customer database software to handle all of the data.

Once you have that data, there is no limit to what you can do in terms of segmentation and marketing, from using an end to end direct mail service to personalized email newsletters and special events and discounts.

What is a customer database?

A customer database is, in basic terms, a single point where you will save the details of your customers. You will have things like name, address, email, phone number, contact preferences, demographics, and purchase history.

You can build more substantial databases that are data hubs and track a lot more information about the user journey too.

The type of database you build and need will be dictated by the type of business you have and if you are likely to have returning customers or one off buyers.

There are several options with customer databases, and many of them are free until you reach a certain amount of entries.

Here are some questions to ask when it comes to choosing the right database system for you:  

●      Pricing (how much do you want to spend, and what are the prices as you grow?)

●      How easy is the setup and management?

●      Can you access it from anywhere?

●      How secure is it?

●      Does it generate reports for you?

Are there benefits to having a customer database?

With online transactions the most popular way for people to shop, understanding how to reach those people is essential.

Building a customer database can be done across your social media, direct via the website, or even in-store (although people generally have less time to fill things in here). A key thing to remember is that you should always have an opt-in system that meets the requirements of your country.

New opportunities

When you have access to data and how your customers interact, you have the chance to spot patterns and trends. When you see these trends, perhaps for a specific service or product, you can change the landing page to meet their needs.

Perhaps you see that there is an issue with people being able to complete a purchase or that a lot of products have been wishlisted (but you hadn’t ordered new stock). You can allow people to make pre-orders based on their wish lists.

Data is information, and with the information, you can make smart business decisions.

Loyalty

One of the most powerful things when it comes to selling and selling well is having loyal customers. Loyal customers are a community; they want to buy new products, they want information, and they want loyalty programmes.

Unique discounts, ‘secret’ offers, pre-ordering, early access, and points on purchases are great ways to build a loyal audience.

Using your database, you can track the increased engagement and find where you can make an impact. Marketing that is created to speak to your audience, taking into consideration their preferences and previous purchases, is essential.

Personalisation

Hello <INSERT NAME>, is an email that no company wants to send and no customer wants to receive.

Personalisation of marketing content makes it feel less salesy and more like a conversation. Customer databases - those that are well maintained, at least - will have the correct details to make sending out flashes, newsletters, or anything else easy.

But perhaps more importantly, when collecting information like date of birth, you can use that to say happy birthday and offer a discount. McKinsey & Company reported that a simple ‘happy birthday’ and a discount saw an increase in revenue up to 30%.

A customer database gives you access to information, but it is what you do with it that matters. Having a marketing strategy in place will mean that you can treat your customers better and increase your profits at the same time.

Through a database, you can understand your customers in a more meaningful way; that insight is something that doesn’t come from anywhere else.

A key area to pay attention to is how people are spending money too; a huge trend is this right now: Digital wallets transaction value to hit $16 trillion globally by 2028, says Juniper Research -  offering the payment types that are trending and requested will also increase profits.