Your Client Database
How valuable is a client database? Do you really need one?
Probably the biggest marketing mistake a small business can make is to not build a client database. Many can’t see the benefits and some put it in the too hard basket as they have other more urgent matters to attend to.
In difficult economic times you need to be nurturing your ‘A’ class clients as the 80/20 rule suggests, a staggering 80% of your business comes from 20% of your clients. Knowing who these clients are and being able to contact them is essential to maintaining or growing your sales.
Ask yourselves this – is it easier to sell to an existing customer or client or a new potential customer or client. If you answered the later then you have customer satisfaction issues that need addressing immediately. Most of us realize that customers that have previously experienced you will be happy to return.
What is important about starting a client database is that it is easy to use and that all data is kept in one central place. You may start out using an Excel or Lotus spreadsheet which is fine for small databases but as your client list grows you may require specific database software such as Microsoft Access, Lotus Approach or packages such as Hotlist or Goldmine – it will all depend on the functionality you require and your budget.
Richard Kemp – Watts Price Accountants
The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.