Databases are one of the most important things your business can utilize to ensure that you really KNOW your customers, satisfy their needs and thus GROW your business with repeat customers. Being able to WOW your customers with pro-active customer service is key.
Whether your database is integrated into your contact management system, part of your customer relationship management system on your web site, or built into your cash registers in your retail stores, being able to KNOW your customers will help GROW your business. This involves giving the right customers, the right discounts at the right time; knowing what products in certain customer segments (along various demographic criteria) and other data driven sales initiatives.
The Wall Street (6 June 2006) writes how Tesco PLC, Britain’s largest retailer is beating Wal-Mart through the use of customer databases linked to a “Clubcard”.
Here’s some key points from the article:
– The Clubcard boosted Tesco’s marketshare to 31% – double that of Wal-Mart
– Tesco can tailor promotions to individual shoppers and see how the promotions work.
– Data-driven strategy makes Tesco a darling with product vendors (Coca-Cola, etc)
– Tesco’s knowledge of shoppers competes against Wal-Mart’s low prices.
For example, Tesco identifying a segment of its customers who shop on price and then identifying 300 products that the price sensitive shoppers bought and offering them discounts helped ensure those customers didn’t defect to Wal-Mart’s low prices.
– 17% increase in sales ($79 billion) and income ($2.96 billion)
– Able to segment its shoppers between affluent and price-sensitive
– Segmenting it’s shoppers 6 different ways
– 15 million shopping baskets a week
– Each product is scored on 50 data points (price, size of the package, etc)
Another example – Data showed that customers were not buying whole meals from one small Tesco store. Focus groups confirmed that many of the shoppers (South Asian or Arab) wanted lose bunches of food they could touch (like in a market). Tesco opened a supercenter and sales are booming.
YOU are a small business and NOT multi-billion dollar Tesco HOWEVER the principles of how you can use a database to GROW your business are the SAME.
If you want to GROW your business, if you want sales to INCREASE you MUST leverage the power of a database solution for your business. Talk to your local solution provider and get her to help you out.
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