Customer Database Software

A good customer database software program is critical in building and expanding your business. By keeping track of customer contact and transaction information, you will be able to run database reports that will help you market to your most responsive customers. Having a database is a requirement of creating a viable Customer Relationship Management (or CRM) program.

Here are some of the features you will want to look for when shopping for the right database for your small business.

Store all customer contact info including the ability to create customized fields
Ability to store sales history
Ability to search and filter all data
Manage duplicate files
Ability to add date-stamped notes
Export customer data into external spreadsheet like Microsoft Excel so that you can run recency/frequency reports
Ability to import data from external data sources such as email programs and spreadsheets
Business analysis tools such as ROI reporting and sales performance analysis
Ability to share reports and info with other users across the Internet

Below are a few customer database software recommendations for your business. This does not represent an exhaustive list, but rather, a brief overview of some of the more popular options that I recommend.

Take some time to look at all of the following options and research the best solution for your business.

Recommendation #1: Microsoft Excel

If you' just getting started in your business and already have a copy of Excel on your computer, you'll be happy to know that you can easily set up your customer database without spending a dime.

Technically speaking, Excel is a spreadsheet program and not a true customer database software program. I wouldn't recommend it for a larger complex business. But if you're a small business person on a budget, Excel can work admirably as your first customer database.

Excel Features

Easily sort and filter your data.
Create tables and graphs showing sales trends.
Create custom forms for customer data entry.
Perform statistical data analysis.
Creation of PivotTables and PivotCharts for more dynamic data analysis.
Ability to connect to data from external files and sources.
Advanced data analysis toolset.
Ability to create mail merge lists.
Easy data lookup functions.
Data validation function.

Versions & Cost
I'm assuming you already have Excel on your computer so that there is no reason to purchase it. If this is not the case, you're better off buying one of the other database options below instead of dropping $200 on Excel.

Additional Resources
I highly recommend Paul Cornell's excellent book Excel As Your Database. You will learn how to use Excel to define and enter your data, how to connect to other databases, how to analyze your data, and how to automate repetitive tasks.

There is also an inexpensive 3rd party program for Excel called Data Manager. It runs along with Excel and adds Wizard-like templates to take you through the process of creating, maintaining, and manipulating your customer data.

Recommendation #2: FreeCRM

FreeCRM is a hosted customer database software solution. This means that your database is stored on the Internet and you login to your account to access it. CRM is short for Customer Relationship Management and that is exactly what FreeCRM does.

Because the entire customer database software is hosted online, other people can view the data (as long as they have permission.) If you're a one man or one woman show, this isn't relevant but if you have a small sales force, this is a very nice feature.

FreeCRM Features

Integrated email campaigns.
Call automation.
Real time reporting & analytics.
Track all activities via online calendar.
Track and analyze all sales activities.
Lead tracking & follow up tools.
Task tracking.
Call scripting & automation.
Protected by 128-bit SSL encryption technology (pro version.)
Unlimited data storage (pro version.)

Versions & Cost
FreeCRM comes in two versions. The standard version is free while the professional version will run $14.95 per month. Compared with other hosted CRM solutions, this is really a good price. Which version is best for your needs? In most cases, you will want to go with the Pro version for the unlimited data space, data encryption, and advertising-free viewing.

Click here to view the differences between the standard and pro versions.

Recommendation #3: ACT! 2008

Moving up the ladder of flexibility, we come to a very popular customer database software program - ACT! 2008.

ACT! 2008 Features

Populate 60+ pre-defined fields including Name, Company, Phone, Address, Web site, & Email.
Create company records and view a roll-up of notes, history, and opportunities tied to contacts at those companies.
Choose from 20+ preformatted sales reports or export to Excel to perform database marketing functions.
Utilize the ACT! Dashboard to view top opportunities, closed sales or graphical snapshots of tracking metrics.
Access 40 standard reports including phone lists, activity reports, referral sources and sales summaries.
Use the Report Designer to customize specific reports for your small business.
Schedule calls and to-do lists and access them with five built-in calendar views including daily, weekly and monthly.
Use Activity Alarms to stay on top of deliverables.
Create, send, and track emails with the ACT! email client or by integrating with Outlook.
Track all customer correspondence for a history of all communication with a specific person or company.
Quickly identify your last communication by using the Last Communication fields.
Write letters and perform mail merge operations using the built-in word processor or by integrating with Word.

Versions & Cost
ACT! 2008 comes in several versions but the one I recommend is the basic version. It normally runs about $230 but as I write this, it is available at Amazon for just $106.

Final Comments
Whether you choose to use a more manual system like Excel or a more automated solution like ACT! 2008 is really not important. What matters is that you start keeping track of all your customers and prospects through a capable customer database software solution.

One of the quadrants of the Integral Marketing System™ is Internal Marketing. Integrating a customer database solution is the most important component of this quadrant. Without it, you won't be able to run a database marketing program which is critical to growing your small business.

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