Most companies have a base of regular customers, but few know why those customers keep coming back. Quality, price, delivery, convenience; these are some of the factors that could explain why a customer continues to buy from your company but, unless you understand the factors behind your success, you cannot plan a customer retention strategy for the future. The discipline of building and using a database helps you concentrate on these important issues. By bringing this information together in a single database, you can get a comprehensive view of individual customers and customer groups and assess the effect of different marketing activities on their purchasing behavior. This is the kind of customer and market profile you can develop using database techniques:
- Which market sectors do customers and prospects fit into?
- How many are in each sector?
- What products do they buy?
- What other products could be offered to these sectors?
- Which sectors offer the best growth opportunities?
- Which are the most valuable sectors?
- Who are the key customers in each sector?
- How profitable are the key customers?
- What is the cost of each customer?