Databases are essential tools for the internal functioning of a company and a powerful instrument to generate more sales and retain customers. We tell you everything about how to create a database for a company and all the advantages of doing it.
Table of Contents
What Is A Database For A Company?
A database consists of a collection of information organized in such a way that it can be easily filtered to find specific data.
The databases in companies can be oriented to collect diverse information according to the area of interest: there are databases of suppliers, inventory, or press contacts, among others.
However, perhaps the most common database is the one that helps companies organize their customers, potential customers, or leads (those who have contacted a business, leaving their data, but have not yet closed their sale). These databases of clients and potential clients generally include:
- Personal data: name, telephone, email, postal code, company (in the case of B2B).
- Past interactions with the company: what purchases have you made, billing information, and what type of contact you have had with the company (if it was by email, by phone, in a physical store). This helps salespeople to make personalized offers or to know which customers are the most profitable. If we are talking about potential customers, fields such as the activity sector or products in which you have shown interest can be included.
- Future needs: if it is possible that he will come back for the same or a similar product in the future (a classic example is a dentist who contacts his clients every year for a check-up or cleaning).
How To Create A Database For Your Company?
Perhaps the first step when considering how to create a database for a company is planning. You should ask yourself (including input from your employees) what information the database should include being most useful.
Also, at this point you can consider segmenting customers into groups. A typical segmentation system is according to the stage of the customer journey .
Do not forget to normalize your database: this consists of eliminating redundancies or inconsistencies in the data so that it is easier to extract information from it.
The next step is the choice of software for the database. Although it is possible to use a simple spreadsheet, there are systems such as CRM platforms that allow you to exploit the full potential of your database and automate certain functions.
Finally, if you want to improve the effectiveness of your sales campaigns, you should expand your database. To do this, you can resort to strategies to capture leads or, if you move in the B2B environment, use a database of companies that allows you to extract segmented and relevant information.
It is also important that you keep the information updated at all times: only then will the information in your database be really valuable.
How Does A Good Database Help You Sell More?
Once you have passed the information on how to create a database for a company, it is time to understand the essential help that it will provide for your business.
A database allows you a direct connection between your business and clients, in the long term. In this way, you eliminate the obstacles of advertising or communication on social networks: you can resort to direct marketing tactics, such as postal advertising or email marketing.
In addition, a database allows you to generate personalized campaigns for each client: since you have specific information about people, you can also offer them discounts or campaigns that align with their interests.
In short, it provides an advantage over other businesses, by having a source of privileged information about what your customers want and direct contact with them.
Advantages Of Having A Database In Your Company
Generate personalized offers
Personalized messages and offers achieve customer loyalty and can generate up to 30% more profits . The database helps you generate these types of offers, by allowing you to generate customer profiles based on their conversations with your business or their previous purchases.
Anticipate the needs of your customers
Thanks to the database in your company, you can anticipate when a client or prospect may need a product or service of yours: you can send them offers according to designated holidays or products associated with the one they already bought previously, among other options.
Discover business opportunities
The information in the database can also collect the problems that customers have experienced with your product (and that you have not been able to solve) or the products or services that demand the most but are not usually in your inventory. Apply this information to improve internal processes and offer products better aligned with customer needs.
Better Predict Sales
What is the importance of forecasting sales? It’s crucial to have an idea how your sales will look like in a certain period to prepare for the worst-case scenario. If you have a database set in place, you’re able to get relevant details about why your sales have gone up or declined for the past couple of months, quarter, or year.
But having a raw database isn’t all you need to predict sales successfully. You can better predict your sales by using one of the best forecasting software. With the use of a forecasting software program, you’ll get total visibility or awareness into your sales pipeline. You can also use artificial intelligence (AI) to predict your sales with superhuman precision and accuracy. In this way, you can capture every buyer interaction, improve customer experience, and deliver an up-to-date view of deals based on facts.
Takeaways
Creating a database to get more sales is a smart decision for any business owner. Whether you’re in the retail sector or commercial services, the amount of money you make from your products and services is vital in measuring your success. Having a database will help you accelerate your sales since you’ll have an actual basis in creating more effective sales and marketing strategies.