Why do companies use databases?
Customer databases are collections of customer names and other information that companies maintain on file within certain software programs such as Microsoft Access, SPSS or SAS (statistical analysis software). Companies enjoy a number of benefits from keeping active customer databases.IdentificationCompanies maintain customer names, addresses, phone and cell phone numbers, email addresses, purchases, dates of purchases and other vital information that they collect via the Internet or through frequency or loyalty cards used during purchases. They use this information to study what consumers buy, then promote those specific products to each customer.SignificanceThe most notable reason a company maintains a customer database is because it takes a lot of advertising dollars to acquire a customer. The rationale is that once the customer makes a purchase, why not periodically offer them coupons and get them to make additional purchases.EffectsDatabases allow companies to better segment thei
