One of the most important marketing assets in your business is your customer database. This database contains information about your former customers, potential customers and active customers.
What is Database Marketing?
It is a strategic process that gathers, purifies and uses data that will facilitate marketing communication and sales, with the aim of:
- Acquire new customers;
- Retain your customers;
- Generate more business with your current customers;
If you’ve never taken the time to build a customer database for your business, now is the time to start.
I suggest that you first collect the data from your past clients and add it to your database. If your business is run entirely online, you can integrate a subscription form into your website that will allow you to create and organize your online database.
Finally, your goal will be to establish a communication strategy that will allow you to collect data from your new customers.
Why is it important to create a marketing database?
Consider the following example. A company executive in mechanical engineering, in business for 10 years, recorded the data of about 1,000 customers in his database. However, he never took the time to communicate with his customers (new products, services, other news).
One day, he decides to write a letter informing his customers about a new technology that is now available. It sends out this newsletter to all of the customers in its database. This letter costs him between $275 and $ 375 to produce and send, but in the end, it generates tens of thousands of dollars in new profits for his business.
A customer database is a very valuable marketing asset for your business. Know how to use it!
How to use a marketing database?
Your customers want you to take care of them.
Statistics show that the number one reason your customers stop doing business with you is because they no longer feel important to you, to your business.
Some experts would go so far as to say that your customers expect you to communicate (in some way or another) with them, on a regular basis.
But beware! Your customers don’t want to be treated like second-rate individuals. They don’t want your flyers and sales pitches. Rather, they need to feel exclusive. They need to know that they are important to you. And it is your duty to nurture this relationship. After all, they are the people that keep you in business.
You should never stop collecting information about your customers. This information is vital and should be recorded in a computerized database.
In addition to the name and contact address, you could also record details of all their purchases, their birthday, the name and age of their children, their hobbies, professional life, etc.