customer database - definition

Each record in the customer database is usually organised as a set of data elements (facts) in order for better retrieval and sorting. When ‘queried’, the items (information) retrieved can be used to make informed decisions that might otherwise be impossible, or more difficult, to make. This information can also be called ‘customer insight’.

To manage and query a customer database, an application called a database management system (DBMS) is used.

A customer database will have a structural description of the type of facts (data) held in that database, called a ‘schema’. A schema describes the data held in the customer database, and the relationship between the different data. Schemas (or customer database structures) can be organised in many different ways. There are a number of different ways of organising a schema – these are known as database models (or data models). The most common model in use today is the ‘relational model’ (hence the term ‘relational customer database’), which means that all data / information is represented in the form of multiple related tables each table consisting of rows and columns. This model represents relationships by the use of values common to more than one table.

The flexibility of relational customer databases allows programmers to write queries that were not anticipated by the original customer database designers. As a result, relational customer databases can be used by multiple applications in ways the original designers did not foresee, which is especially important for customer databases that might be used over long periods of time. This has made the concept and implementation of relational customer databases very popular with businesses across all sectors.

To find out more about customer databases and how ICLP can help your business, please visit ICLP-the global loyalty marketing agency.