A database is a customer list to which has been added information about the characteristics and the transactions of these customers. Businesses use it to cultivate customers – as they seek new customers.
A database provides the means for research to support decisions. It enables profiling of customers by searching for prospects who are similar to existing customers. It provides the means for implementation of profitable programs of repeat business and cross-selling. It assists in marketing planning and forecasting. Further a database can:
• Match products or services to customers’ wants and needs
• Help select new lists or use new media that ft the profile of existing customers.
• Maximize personalization of all offers to each customer.
• Provide for on going interaction with customers and prospects.
• Pinpoint ideal timing and frequently for promotions
• Measure response and be accountable for results
• Help create the offers most likely to elicit responses from customers
• Help achieve a unique selling proposition (USP), targeted to appeal to your customers
• Integrate direct-response communication with other forms of advertising
• Demonstrate that customers are valuable assets.
Types of database
1. Active customers
2. Inactive customers