CUSTOMERS ARE THE LIFEBLOOD OF A BUSINESS

Businesses need to use customer databases to collect and store customer details. These days this is easy using systems like ACT!, Microsoft Access and MySQL. Using the database to contact customers is essential for repeat purchase, cross selling, introducing new products or services and newsletters. What's more, not only will satisfied customers buy again, they will recommend you to friends and colleagues.

In our experience, too many businesses buy new prospect lists rather than use existing customer databases. Depending on the offer and the list, a good prospect list may pull a 0.5% to 2% response. The same offer sent to existing customers can generate 5 times the response.

Analysing customer records is important for developing marketing strategies and producing targetted promotions. Customer questionaires, included in a mailing or an invoice/statement run, can return a mass of data that will save £millions.

The UK has one of the most sophisticated postcode systems in the world. On average each postcode contains 15 homes. Several companies have had secure access to the 2001 Census Data which has been used to classify households into around 50 types. The old A,B,C1,C2,D,E classifications are still used as short hand. By attaching an ACORN code to a postcode your B2C customer database will reveal a profile of your customers analysed by which ever variable you choose.

Business to business customer databases can be profiled, enhanced and cleaned by matching to universal systems such as D&B.

It makes sense, then, to ensure you develop and maintain your customer database.

For consumer lists, address cleaning using the Royal Mail PAF file, the Electoral Roll and Mailing Preference Service should be undertaken at regular intervals, especially before major mailshots. These exercises take out duplicates, 'goneaways' and deceased - saving costs, irate customers and embarassment.

Customer information can be further enhanced with demographic data (age, wealth) by matching up with other commercially available national databases.

Business lists can be enhanced and cleaned using large providers such as D&B. Generally business lists are quite specialist and can become quickly out of date. Telemarketing cleaning before and after mailing can be very cost effective.

An integrated marketing strategy will require telephone numbers, email addresses and transaction history.

If you have a customer database project click here to tell us more or call 0870 240 3139.