A database is a centralized collection of organized data that is stored and managed by a computer system. By tracking customer information, analyzing market trends, and creating targeted marketing campaigns, businesses can use their databases to generate sales and profits.

Every business needs a database. Data is the lifeblood of any organization and without a solid understanding of how to leverage this resource you can be leaving significant opportunities on the table. From customer lists to accounts receivable and inventory, a database is the foundation that allows a business to function.

By leveraging the power of database marketing, you can improve customer engagement, increase your average order value (AOV) and grow your bottom line. The key to unlocking this potential is to understand how a database generates sales and profits, and then to implement strategies that take advantage of the data that is being collected.

For example, when you segment your email list by age group, you can send more relevant messages that will inspire customers to buy. Or, if you are an eCommerce store that has customers who regularly abandon their carts, then using a database to trigger automated emails when the customer is close to completing their purchase can help them convert.

Most databases offer a cost per user model which can be expensive for small and medium sized businesses. However, if you choose to develop your own database with the help of a software developer you will likely be able to claim back any associated R&D costs through HMRC.