What Is A Customer Database, Why Every Company Needs One, And How Do You Use It Properly?

3 min readFeb 24, 2020

What is a database?

The definition of a database is “a structured set of data held in a computer, especially one that is accessible in various ways”. A customer database is essentially a set of data collected by companies about their customers via various methods. An example of a simple customer database is a document that contains the names, email addresses, telephone numbers, and ID number of all your customers. More comprehensive databases might contain even more precise information such as customer demographics, age, gender, height, weight, shoe size, or perhaps even a customer’s spending patterns, shopping preferences, travel history, and even a customer’s medical history.

Why is database important?

Well-maintained databases allow large companies to leverage on this data to better understand their customers which gives an undeniable competitive advantage. A database allows companies to study and analyse customer trends, which in turn allows them to better target a specific market niche and cater products to suit different ranges and types of customers. With the modern business scape gravitating towards big data, having and maintaining a good database as a foundation has become a bare necessity. Big data on the other hand, is an extremely large data set or sets that may be analysed computationally to reveal patterns, trends, and associations, relating to human behaviour and interactions. Big data will change the way future business interact and engage with their customers. With a strong customer database, businesses can create, target, and send relevant personalised marketing messages and updates to their customers. This results in lower drop off rate while increasing sales and brand awareness.

Here are some examples of how businesses can effectively maximise on their customer database.

· Improve targeted marketing ROI and decrease wasted ad spend.

· Isolate specific market segments with detailed customer demographics, spending patterns, needs and interests.

· Create personalised marketing campaigns to improve customer experience, response and engagement.

· Increase cross-selling of products across market niches by efficient ad retargeting.

· Increase customer satisfaction and service by making the customer journey and complaints more seamless.

Use proper tools to help you get started

In the olden days, database collection was an extremely tedious, time consuming, and labour-intensive process. Business owners would employ professional surveyors and researchers to collect quality data from customers, summarise the data collected, and massage it into a format which is easy to read and understand.

Technology however, has greatly improved the ease of this process and now you can even create entire surveys, polls, and questionnaires with just a few clicks of a button! BOLD.Tag, a solution by MACROKIOSK, was designed to empower businesses to create and collect databases for ease of creating better marketing campaigns. Businesses owners that are not tech-savvy can easily use BOLD.Tag to create customised surveys, polls, questionnaires, and events making data collection easy.

MACROKIOSK is Asia’s leading digital technology company with a strong global presence. Since 2000, we are at the forefront of delivering Digitalisation Platform as-a-Service (DPaaS) via innovative digital solutions to businesses and individuals to help them engage with customers in the digital economy.

To date, more than 2000 clienteles in 37 countries spanning 18 industries and millions of users experience MACROKIOSK’s digital products and solutions that are scalable, secure and highly adaptable to their needs.

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About MACROKIOSK

To date, more than 3000 clienteles in 37 countries spanning 24 industries and millions of users experience MACROKIOSK’s digital products and solutions that are scalable, secure and highly adaptable to their needs.

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What Is A Customer Database, Why Every Company Needs One, And How Do You Use It Properly?

Written by MACROKIOSK MATTERS