Cover image for 'How to Build Your Database' blog

Build a Customer Database

The benefits of creating a customer database extend far beyond collecting a few names and email addresses.

A customer database is an asset, and when utilised properly can be a valuable resource for increasing conversions and customer loyalty.

Why Build a Customer Database?

build a customer database

Companies can find the task of building a customer database daunting…

How do you convince customers their inbox isn’t going to be spammed, and how do you transform that list of data into loyal customers?

Don’t fret, because we’re providing our favourite strategies to help build your customer database. Keep reading for campaigns ideas that capitalise on this data to increase your conversions…

What is a Customer Database?

A customer database stores valuable information about your customers such as their names, age, purchase history and contact details. The management and use of these databases to make business decisions is called Customer Relationship Management (CRM).

CRM involves making the most of your customers’ data, discovering valuable insights about their activity and turning these insights into successful data-driven decisions. As you build your database you should invest in a CRM software to help you effectively manage your customer data.

See our top recommendations for CRM software for small businesses here.

How to Grow Your Customer Database

Giveaways

When you’re just starting to build your customer database a giveaway is a surefire way to incentivise customers to pass over their details.

If you have a website update your homepage banner to reflect the giveaway with a landing page to an email signup web page. Make sure there is a clear CTA indicating the benefits of your giveaway. If you don’t have a website, an in-store signup sheet is just as effective.

Don’t know how to create your own landing page? Get in touch with us or check out our landing page blog for helpful tips and tricks.

Make sure you advertise your giveaway on every platform your company has. This includes in-store signage, social media, posters etc. If graphic design isn’t your thing, check out Simtail’s Online Store which offers custom artwork creation and printing.

Welcome Discount

A money-saving incentive is a great way to entice a customer to provide their contact information. Whether it’s offering 10% off a customer’s first order or a buy 1 get 1 free promotion, customers are more attracted to an offering if they see more value in it.

Take a look at this example below.

Build a customer database with calls to action

Here you can see a clear CTA, an organised format and an obvious place to input an email.

You could strengthen this by including an exit button that further entices the customer to enter their details, ie an exit button labelled “No, I don’t want a discount.”

Surveys

Customer Surveys provide data and great qualitative information on your products, industry and customer type in general.

See this example of a customer satisfaction survey…

Build a customer database - Customer Satisfaction survey

Businesses will gain quality information about their products, and see how many and what types of customers are unsatisfied with their products.

They could take this opportunity to use this information for re-marketing purposes to gain their existing customers’ loyalty back.

Loyalty Program

Customer Loyalty programs are a double whammy when it comes to building and actioning campaigns by using your database.

Start off by offering customers a variety of incentives to join your loyalty program. For example:

“Get 10% Your First Purchase, VIP Access to New Products, Events & More!”

More often than not, the initial discount will be the catalyst for the customer to join. Keep reading for ways you can use these different strategies to drive campaigns focused on customer-data!

How to Make Data-Driven Business Decisions

So you’ve built your customer database and you’ve got a whole bunch of data, now what?

To simplify how to read this data and turn it into actionable campaigns, we’ve developed a few scenarios into a handy flowchart for you.

Giveaways

Build a customer database by offering giveaways

Loyalty Program/Welcome Discount

Build a customer database with a loyalty program

Surveys

Build a customer database with a survey

These are only a few instances in which utilising a customer database has helped both customers in their buying journey and businesses in improving their conversion rate. In reality, the goals you can achieve by employing a customer database are endless! 

 

We hope this blog has been useful in helping you think of creative ways to build your own database. If you need any extra help, fill out the form below and a Simtail member will be in contact shortly