Top Tips To Profile Your Market Using A Client Database

In the last 10 years, the Internet has radically changed the process companies conduct business. Shopping can now be done all hours day and night through the internet. Products and services can now be ordered, delivered and consumed electronically in a snap . Customers take hold of their goods within hours of being ordered. While more and more people turn to online shopping, businesses need to translate the other elements that make up a good buyer experience into the online channel. Live chat, online phones or interactive voice response systems are now the norm. Unfortunately, if you're not making use of a client database to connect your customers online, you are undoubtedly lagging behind.

Today ,competition is tougher than ever. Product quality is not what is being fought in the battle ground alone. In fact, a few companies are now jumping at the opportunity to get ahead of the competition through customer service, while their competitor crashes and burns. As a result, a more responsive customer service experience is what customers expect and clamor for. However, providing high-availability, high-quality customer service is neither easy nor inexpensive.

You therefore must be strategic. In reality, you can't expect to give the same or equal service to every single clients, if you have more than 500 clients, for instance. Your instinct, as a business owner, will be to try to meet all their demands in the fear that one missed step could cost you a valuable customer. What you'll realise by taking this approach is that no matter how much effort, time and money you put into your business you are never going to keep everyone happy. Accepting this truth, you may be asking whether is it achievable to run a business that is both profitable with high levels of customer satisfaction?

The answer is yes! However, you first need to realise that not all customers are the created equal. You have probably heard about the Pareto Principle (or the 80/20 rule). This principle says that in the majority of businesses, 80% of your income is derived from just 20% of your clients. So think about this for a second, if your revenue comes only from such a small fraction of clients, don't you think it is justified to provide a different level of service to them? Would it be prudent to pour in more effort on this select group of clients instead? And granting that these clients are the very ones that keep your company alive, is it not proper that you take utmost care of them?

But who exactly are these people? Is there a way to single out these people out of the 500+ clients that you have? This is why you need to sort your contacts into high-value and low-value customera. Your high-value customers are the clients that bring in the most amount of revenue into your company. Sorting your customers by value of sales or amount that they spend with you is one way to categorise them . Giving exceptional service or special treatment to your high-profit customers is extremely important because it ensures client retention, thus, protecting your revenue.

High value-customers can help secure your income despite the economic situation hence you must give special treatment to them. To groom these clients, where you would normally use email as a means of communication, next time make a personal call, or when you meet face to face, treat your client to a cup of coffee and sandwiches. These seemingly small touches will make a huge difference. This doesn't follow of course that you will be giving poor service to your low-value group. A client database system will allow you to suitably service both groups - effectively and efficiently, without letting anyone feel less important. The bottom line is, your client database will be your best tool to help you sort your high-value from low-value clients, while ensuring that the service being rendered is appropriate for each category.

Having sorted your clients into high-value and low-value groups in your client database, you will now have the ability to implement the differing levels of treatment for each category and deliver the right amount of nudging deemed as needed. For instance, using your client database, you can:

(a) Track the buying preferences of your special 20% of clients so you can send them newsletters or promos relevant to their purchase history. This further facilitates future up-selling and cross-selling opportunities.

(b) Use the tool to turn your 80% of lower-value clients automated tasks. Automated messages will ensure that these low-value clients are being serviced without taking up too much of your time.

A client database software is a storehouse of your customers' general information such as demographical data, buying preferences and history, customer activity and interaction with your company, correspondences and so on. Having all these information will give you a grasp on each and every customer's personality, their likes and needs; giving you the edge to better deliver the satisfaction every unique buyer seeks to find. A database software helps you open up vital communication channels so that you have a common customer-focused knowledge base, and sufficiently equip your team to better serve your clients, especially that crucial 20% of high value (high profit) customers.

"The art of communication is the language of leadership." Living in this high-tech, fast-paced world requires storing every bit of valuable data because it serves as the essential connection between your team and your clients. Bottom line, a client database is communication in itself. Learning the art of communication through your client database will help your company succeed. By using these and other strategies, you and your employees can reach new levels of leadership excellence.


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