Importance of Customer Databases
Much has been said about the countless advantages of automating AR processes. Saving time, money, and other resources are the most important. But we must take care of several details to achieve optimal automation.
All gears must fit to keep your AR platform working like a well-oiled clock. One of these gears is your customers' data. It must always be accurate and updated to avoid cumbersome mistakes. Storing this information in an organized way, with different parameters, is known as a database.
Having a database means accessing all the information we need at the right time in one click. It’s one of the essential digital tools for the growth of a business, and its content can be considered its most critical asset.
Why Have a Customer Database?
Information is one of the most precious resources within a company. Yet, it tends to change constantly. That's why the importance of a good database lies not only in the amount of data collected but in its quality, timeliness, and relevance to your business.
A customer database will give you access to helpful information according to your objectives.
For your database to be effective, it must:
- Be integrated by interdependent data
- Allow access to a large number of users
- Have reliable data
- Be protected and backed up
Types of databases
Companies can use many types of databases. Each has a different approach and relevance, depending on your needs. At the end of the day, their purpose is the same: storing data in a clean, orderly, and secure way.
These are the most used databases:
- Relational database: this is the most used database. Information is kept in tables divided into rows and columns that store characters, text, numbers, images, videos, etc. All table elements can be queried, modified, analyzed, and deleted. The tables relate to avoiding data redundancy.
- Distributed database: blockchain technology is an excellent example. Data is stored in a decentralized and replicated manner in several physical locations. This allows for greater availability of data in case of failure of one of the nodes.
- NoSQL database: SQL is the language used in relational databases. NoSQL avoids using it, as it can be slow when handling large volumes of data. Instead of using different columns, data is stored in a single column to save space and processing time.
- Object-oriented databases: these don't store individual data but encapsulate it in objects. These relate and group to provide the necessary information. For example, if we want to save a client's information, this will be an object with all the properties we need: name, surname, telephone, etc.
What Are the Advantages of Having a Customer Database in an Automated Platform?
Accessibility and Centralization of Information
Thanks to the remote access allowed by databases stored in the cloud, you can keep your data in a single place. As a result, searching for any data we need in one place will make work much more efficient and productive.
Avoidance of Multiple Data
Databases let systems identify and eliminate duplicate, triplicate, or more data records. This helps save time, space, and resources. Collecting information about customers helps manage the relationship and their data. This is how the information that interests us most is segmented.
Preventing data redundancy helps save storage memory and time by eliminating errors and inconsistencies. This reduces spending time in problem-solving and optimizes the execution of tasks and operations, allowing the inspection of administrative processes by high-hierarchy staff.
Databases allow immediate access to data. This makes any task related to this information more efficient to perform. Various data aspects can be optimized, such as commercial communication or a detailed record of sent or received documents. This is handy when quotations, orders, and sales processes are part of an automated process.
A database facilitates the execution of activities in different areas. A well-structured, updated database gives your platform real-time access to information without inconvenience.
Is a Customer Database Safe?
Thanks to company databases, it's possible to promote the security of the information stored in them. Every company handling a database must follow the European Data Protection Regulation (GDRP).
This action allows the discarding of non-collectible data, facilitating segmentation. It also avoids the risks of fines and penalties since the company manages the information. Although it may seem complicated, it is one of the best strategies to keep up to date with the company's responsibilities in handling its contacts' information.
The idea of storing all customer data in a database favors the organization of information, responsible data handling, and immediate access to it.
Paystand's Commitment to Database Security
As a platform that focuses on AR optimization and has many ERP integrations, databases are essential for Paystand’s optimal functioning. That’s why we’ve established a robust commitment to data security.
Our approach to security is rooted in the unique nature of B2B payments and provides the most robust, comprehensive protection available. Paystand employs embedded safeguards and protocols to ensure that information is secure.
We protect your business and your customers' data with industry-leading controls and technology like:
- Bank-grade data security: ensures all data remains secure whether in flight during a transaction or at rest in our database.
- Advanced management controls: allows you to manage user activity and keep your data secure from unauthorized access.
With database encryption & password hashing, Paystand encrypts data at rest and key data as it is processed with secure AES-256 encryption. Paystand also hashes all user passwords to an unreadable string of characters in the database.
Having a database will give you a huge advantage in growing your business, not only in terms of efficiency but also in terms of resource savings, asset optimization, and innovation. Are you ready to implement a fast and effective database for your company's growth?