Guide

5 reasons why your business needs a good database

Spreadsheets are great tools for number crunching. But if you have lots of data, for example on customers, personnel or your inventory, you may benefit from a more efficient data management tool. Here's why you should consider replacing spreadsheets with databases to help your business grow…

1. Centralised systems

If your business is growing and you have staff to help you run it, keeping track of the increasing amount of data can be tricky. Good database systems can help you manage all your business-critical data centrally, safely and securely - whenever required - to boost you chances of success.

2. Better management of human resource (HR) affairs

Using a HR database to manage growing staff records can save you time and money. It can streamline most of the HR tasks, automate routine jobs and speed up processing of data such as staff hours, leave, benefits, payroll, etc leaving you more time to focus on furthering your business.

3. Managing customer data and relationships

If customers are the lifeblood of your business, then a good customer relationship management (CRM) database should be at the heart of your growth plans. Full-featured CRM databases are usually powerful enough to store and process everything, from customer contact details, interaction history and accounts, to new prospects, leads and business opportunities. Some CRM systems can even help you run and track marketing campaigns, such as email newsletters. Read more about customer relationship management.

4. Efficient inventory tracking

Managing your inventory well can feel at times like a balancing act. It’s easy to have too much – sitting on a shelf risking wastage, or too little – disappointing your customers and damaging your reputation. If you’re tracking your inventory manually, it’s also easy to miscount, make data entry errors or misplace spreadsheets and notes. By employing an inventory tracking database, especially alongside electronic data interchange and bar code scanning, you can avoid those risks and minimise lost sales while maximising your opportunities for growth.

5. Planning for growth

Most business databases have some form of reporting capabilities – from analysing input data and productivity tracking, to anticipating future trends and customers’ needs. If you’re planning a strategy for growth, a robust database system can be your business' most valuable resource.

For more advice on using a database in your business, see benefits of databases.