Customer database is a system that is responsible for collecting and storing customer’s information such as buying history, personal details, contact information, etc. in order to provide quick and useful information for various uses. In other words, organizations collect information regarding their consumers to help them understand consumers’ performances in purchasing a product. In the past, organizations had a difficult time in collecting customers’ data because it required a lot of time and great effort. Nowadays, customer databases are used by most organizations to help collecting and analyzing consumers’ information in an easier and flexible way. Identifying target clients, reinforcing competitive advantage, and improving product
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As a result they will keep making breakfasts for U.S customers and they may expand the breakfasts production in the future based on having a profit of 25 percent of their total sales. On the other hand, McDonald’s will not focus on providing breakfasts to Asia and Europe. As shown above, using customer databases can help organizations in targeting their consumers and this can lead to having a clear vision of what consumers need and want and it will save time, money and energy for organizations. Consequently, customer databases are important for clarifying and facilitating the method of production required for specific clients.
The second benefit of using customer databases is enhancing competitive advantage for organizations. Any successful and powerful business is based on having loyal and satisfied clients. If organizations did not maintain customers by meeting customers’ satisfaction, providing what customers need, or solving customers’ problems in time, organizations may lose clients’ trust and loyalty. If so, customers will search for another alternatives. Hence, it may weaken organizations’ position among their competitors. For this reason, organizations need to build a beneficial link between clients by knowing what clients need. “How Amazon is leveraging Big Data” (2013) showed that big data is a type of customer database system used by Amazon to offer an excellent service to its clients by ensuring that people