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Customer Data Mining for Gold

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Your small business has a potential gold mine of customer data. Do you know how to collect and use this vital information? Expand your understanding of customer data mining and experience insight to improve your small business profits.

Each interaction your company has with a customer represents an opportunity to learn more to best serve their needs. Take advantage of this opportunity or a competitor will.

The collection and analysis of customer data can help you outpace your competitors but there are other benefits associated with customer data mining:

Benefits of Mining Customer Data

  • Cross-selling opportunities at lower costs

  • Improved customer satisfaction and retention

  • Identifying best and most profitable clients

  • Enhance company marketing and sales practices

  • Extracting profits from your customer data need not be a major undertaking. Start small and build momentum. For reference to the term data mining, I am not referring to the complex data analysis and business intelligence tools used by big businesses. Instead data mining for small business simply means the collecting and analysis of key customer information to improve business profits and customer service.

    Building Your Customer Data

    Collecting customer information is the starting point of building a valuable customer list. Information to collect can be basic; from names and addresses to more in-depth demographic data such as income or age. Data groups can include:

  • Customer Name
  • Complete Address
  • Contact Information: Phone, e-mail, etc.
  • Purchase Data: How often they buy, when they buy, etc.
  • Marketing Data: How they first learned of your product or service
  • Demographic Information: age, geography, and income
  • External Customer Data Sources

    Customer data collection does not just have to be information you have collected internally. Finding pertinent, external customer data can provide additional profitable insight and help your company market to similar customers. Many sources exist at both the government and educational level.

    For instance, CensusScope, is a demographic tool made available by the Social Science Data Analysis Network (SSDAN). CensusScope will allow you to view demographic census data and apply it to your business metropolitan area. External data sources are key to finding profit patterns and trends for your small business.

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