The Benefits of Using Customer Databases

Customer database is a system that is responsible for collecting and storing customer’s information such as buying history, personal details, contact information, etc. in order to provide quick and useful information for various uses. In other words, organizations collect information regarding their consumers to help them understand consumers’ performances in purchasing a product. In the past, organizations had a difficult time in collecting customers’ data because it required a lot of time and great effort. Nowadays, customer databases are used by most organizations to help collecting and analyzing consumers’ information in an easier and flexible way. Identifying target clients, reinforcing competitive advantage, and improving product development are three benefits of using a customer database.

The first benefit of using customer databases is recognizing target customers. When an organization is selling products or providing services without knowing the type of consumers they are dealing with, they may face a lot of problems such as having unclear marketing plans for expansion. In addition, marketing processes may be difficult for companies if there is lack of market segmentation, the process of dividing customers into groups that have similar needs, which can lead organizations to have a high risk of wasting time, money, energy or losing business. Therefore, organizations need to have specific and accurate information about their consumers’ needs to be able to target their market segment. For example, Rudarakanchana (2013) wrote that even though 25 percent of total sales of McDonald’s breakfasts are bought by U.S customers, Asian and European customers are avoiding the breakfasts offered by McDonald’s, which is something McDonal...

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...abase can help organizations in the process of targeting their customers in a more accurate and sufficient way. In addition, from the use of customer databases, organizations can gain competitive advantage by satisfying their customers. Moreover, customer databases can aid organizations in developing and improving their products by knowing about customer attitudes and the changes that are happening in the technological fields. In the future, organizations may develop a system of customer databases to improve many different aspects of their business. In the future, organizations may develop a system of customer databases in order to aid organizations in the classification process to access data quickly, accurately and easily in their business.

In the future, organizations may develop a system of customer databases to improve many different aspects of their business.