Customer database management (CDM) could be defined as the whole process of collecting, analyzing, managing customer data while finding valuable solutions to customers’ specific problems in order to reach/maintain a trademark level of customer satisfaction for your business.
Customer Intelligence (CI) is a method in which you use a highly data-driven process to leverage consumer insights as an attempt to improve your strategies and communications. It is critical to gain a clear understanding of your customer for customer retention by adopting a CI-driven mindset.
Customer intelligence can bring about huge benefits to your business:
- Increasing customer loyalty.
- Visualizing real-time market changes.
- Maximizing sales efficiency.
- Increasing return on investment of your promotional and marketing activities.
- Developing more practical customer-driven business strategies.
Consumer-Driven Insights You Should Know
Below are some facts and figures to highlight the importance of effective customer database management:
- 95% of senior executives strongly confirm the major impact of data on their business strategy development process.
- A moderate increase in Customer Experience (CX) driven by improved client data management could make a business an average revenue boost of $823 million over three years with $1 billion annually (by Temkin Group).
- 53% of millennial consumers agree that unlike mobile devices which could look up shopper profiles and provide users product recommendations, store assistants do not have the ability to provide top notch customer service initiatives. Managing customer data efficiently helps improve your business’s both online and offline customer-driven activities.
- According to GlobalDMA, 49% of marketers utilize data to enhance the customer experience.
7 best practices for customer database management
- Invest in training for your employees
- Use validation tools
- Appoint data control
- Monitor your data
- Focus on relevant data for relevant results
- Avoid data fragmentation where possible
- Visualize your data
By following the customer data management best practices, choosing the right customer database management system, and utilizing these invaluable insights, you will be able to reach out and connect with your audience on a deeper and much more valuable level than ever, which is the best thing to happen to any business.