How to Keep Track of Your Customers

Large businesses have always kept customer information on file but, over the last few years, it has become easier for small businesses to keep databases allowing them to track customer activity and preferences.

There are many database programs available and, which one to choose depends on many factors including your or your staff's expertise with computers, the number of people you are tracking, the amount of information recorded for each person and whether you are just recording information or processing it. In many cases you can use a word processor oe a spreadsheet to record data and use it as a flat database or you can use one of the address books that come with browsers and email programs. At the other end of the scale you can set up a relational database in MS Access.

The subject that immediately comes up when considering databases is the privacy of the customers. While many customers are concerned about private information being kept in company databases, most would prefer to receive mailings and be contacted regarding products which are of interest to them rather than receive blanket mailings and un-targeted telephone marketing calls. If that is the purpose of the information, then most customers will not have a problem and I suggest that is what the goal of gathering such information for small businesses should be.

Apart from customer concerns for privacy, there are legal aspects. The United States does not have the extensive consumer privacy protection laws which other jurisdictions in Canada and Europe have so that a small business offering products to and gathering information about citizens of countries other than the U.S. must ensure that the higher privacy standards applicable there are satisfied.

Such laws typically address three issues: consent, security and the sale of information. As a customer-oriented business, it makes only good business sense to adhere to the highest standards regarding these issues by ensuring the customer knows the information is being collected and agrees; by keeping theinformation in a secure environment; and by never selling or passing on the information to third parties.

Once you have your database set up, you should be able to carry out targeted marketing which will cut your costs and enjoy high success rates with satisfied customers.

FIRST PUBLISHED AT SUITE101.COM