Importance of Customer Information Database, its importance and how to use it effectively
The customer information database is an organised collection of comprehensive info about individual customers or prospects. The information must be updated, accessible, and actionable. This precious data can be used for marketing activities like lead generation, lead qualification, sales promotions and maintenance of customer relationships.
To elevate towards database marketing, an organization must be empowered with processes for managing customer information. Using the database marketing process, a business can build, maintain and use a customer database and other databases (product, suppliers and resellers). You can establish contact, transact, and building relationships with the help of the information collected.
Customer information also includes customer transactions, registration information, telephone queries, cookie information, and information of every contact with a customer at different touch-points. The effort of data collection will result in knowing the customer in a better way. This includes information about a customer‘s past purchases, demographics (age, income, family members, birthdays), psychographics (activities, interests, and opinions), media-graphics (preferred media & mode of communication), and other useful information.
Your customer database acts as the central repository of all of the information pertaining to the relationship between your business and customers. Generally database architecture is not very efficient for analytical applications. Hence, CRM uses a data warehouse for storing customer information. We suggest the use of an efficient CRM system to maintain your customer information database.
The database stores all information about the customer, such as:
Individual-related information :
Company-related information :
The database keeps track of all contacts by/with the customer, including:
What information can you derive from the data stored in the database?
Recent purchase, Purchase Frequency, Monetary Value, lifetime value, Demographics and lifestyle, customer‘s profitability.
Information derived from the database acts as a source of intelligence for sales and marketing teams. Sales and marketing teams must use this data to plan activities. The acttivities must be based on the insights and numbers derived from information collected over a period of time.