Improve Sales by Creating a Valuable Customer Database

Can you remember all of your customers’ habits, purchasing histories and preferences? Unless you have a photographic memory, then probably not. That’s why it’s important for most businesses to have some sort of customer database. After all, one of your business’ greatest assets is your customers. The customer database is your record of past and present sales as well as a great potential source for future income.

Database basics
Every business is different, so there is no exact blueprint for creating the perfect customer database. In general, it needs to be relatively easy to use and manage, provide the information you want and, of course, be cost-effective for your business. An efficient database is an invaluable tool for most businesses because you can:

• Generate sales and/or inventory reports by day, month, quarter and year

• Track the sales habits of each individual customer

• Leverage your sales and marketing efforts

• Save time and money

• Organize customer data, including contact information, buying habits and more

Getting started
If you’re like many businesses, you already have a lot of the information you’ll need to create your database. But you probably don’t have an easy way to access or review it all at once because it’s spread out across old files, different computers, your mobile phone, etc. First, you’ll need to select some use-friendly software like Microsoft Excel, Access, FileMaker Pro or one of the many online database management solutions available these days. Many pre-made databases offer common tasks such as customer contact data, inventory control, time and billing, expenses and more. Just make sure that whatever you choose doesn’t require you to be an IT expert to use it.

Which info to collect?
Besides the obvious customer name, address, phone and/or email address, there are a lot of other types of information that could be useful depending on your type of business, such as:

• Date of birth can be used to determine age and send out cards or birthday promotions

• Products/services purchased and buying history to determine what and when a customer might be interested in again

• Total amount spent with your company to see who your biggest customers are

• Participation in promotions and loyalty programs to promote and encourage repeat customers

• Specials or offers that brought certain customers in previously

• Prior customer service issues to improve any future experiences

• Special requests/orders so you’ll be ready for them on their next visit

Start managing your database
You can do the data entry yourself on slow days or outsource it, but there several other things to keep in mind for your database to be effective. You’ll probably only want to have specified, trained employees be able to update information. You’ll also want to designate who will delete outdated contacts and who determines that a contact is no longer valid. Plus, you’ll need to think about who will have access to your database and how will it be secured. After all, you wouldn’t want your best salesperson going to the competition with a list of all your customers’ information.

Using the information to your advantage
You don’t have to be a marketing guru to start figuring out ways you can use the information you’ve captured to capitalize on your customer base. You can analyze who your best customers are and what they’re buying and when. Then, run a timely promotion around that product or service. Your best customers may all be in a certain age range, household income, sex or from a certain neighborhood. You can then target these customers with a direct mail campaign, email blasts, neighborhood Yellow Pages directories or even door fliers. The possibilities are practically endless.

Other tips
Most people think of their computer as one of the most valuable pieces of equipment in any business. However, it is usually the information stored on that computer that’s worth thousands of dollars in work hours alone. Don’t let hours and hours of incalculable hard work go walking out the door with a computer thief or a hard drive crash. Back up your customer database regularly and, depending on how often it gets updated, frequently. You’ll also want to make sure all employees and team members who will be using the system thoroughly understand it. You can imagine the mess if you have different team members inputting information different ways. And, above all, keep your database current every time you interact with your customer base. Your information is only as good as it is accurate.

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