The Value of a Customer Database


The value of a customer database.

The Value of a Customer Database

Many small businesses fail to keep track of their customers and this is a huge mistake!

In this tough economy, it is important to have exceptional customer service, no matter what product you are offering. During a recession the value of a customer actually increases, because it costs so much more to acquire a new customer. And being financial resources are tight during a recession, focusing on your current customers to generate sales is paramount. The easiest and most efficient way to do this is by using your customer database.

And on average it normally costs 8 times as much money to gain a new customer as it does to retain a current customer.

Using a customer database that tracks customer information, such as name, address, birthday, email address, what they purchased and when they bought from you is extremely important.

By having this information it allows you to stay in touch with your customers and generate repeat sales by making additional offers and rewarding your customers for purchasing from you.

In the short term, this generates sales, but in the long term, it builds rapport and loyal customers. Having loyal customers is the key to generating your maximum number of referrals via word of mouth, also.

In future articles, we will be discussing advanced database techniques and strategies on segmenting your database and targeting future customers, based off of your current customers.

But first, we need to learn more about the database and how you can use it.

First the database can track your inventory, all of your customer’s contact information, when and what they purchased. Plus, it needs to have a means of entering a promo code that will allow you to track what offers are working, and who responds to what offer, and what the customer is purchased with the offer.

Furthermore,you need to be able to track, which customers are buying and which products and be able to determine which products are selling the best. You should be able to break this information down to a yearly, monthly, weekly, or daily level. This allows you to compare, what promotions you are running, and measure who is responding by the promo code and also which promotion is generating the most sales, and measure your responses rates for each promotions.

This can be advantages to you and how it helps you make more informed decisions in regards to your promotions and marketing activities, whom you are targeting your marketing towards.

The most important thing to remember, whether the economy is in a recession or booming, is it is extremely important to stay in touch with your current customers on a regular basis.

Remember current customers are the lifeblood of your business!

Finally, I want you to think about this one thought. Print it out and hang it where you can see it…Every day!

Most companies look at the customer to make a sale. The most successful companies look at the sale as a way of earning a lifelong customer.

Learn some of the strategies and how they can help you generate more sales and increase your customer loyalty.