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Unlocking the value in your database

Your client database is a mine of information, if you know how to use it.

There could be hidden nuggets of gold right in front of you, and all you need to do is take the time to understand the information about your customers and tag it according to their characteristics.

Once you’ve identified the right prospects for a particular service or offer, it’s easy to target them with timely, relevant marketing materials that prompt them to pick up the phone.

What is database segmentation?

Database segmentation (or tagging) is the practice of adding notes to the information in a database so you can search its records and generate lists of people or organisations with something in common. The notes, or tags, allow you to break down the information into subsets of things that belong together.

For example, a broker might offer a free consultation as an incentive for customers to sign up to their email list. Using information about the people who have signed up, the broker can then tag each person on the list as either male or female, tag them by location, or as a business owner vs PAYG taxpayers – you might also note that they showed interest in your incentive.

The most important step in segmenting

As a broker, the most basic information you need to gather about your client base is the split between business owners and PAYG taxpayers. These two groups come to you for different reasons and have quite separate needs.

Your self-employed clients may turn to you for know-how, analytical tools and business finance. Your PAYG clients are more likely to want a residential mortgage, line of credit for renovations or personal loan.

It would be pointless to send an email about deals for first-home buyers to a business owner who is opening a second premises. At best, they will feel you have forgotten who they are – exactly the opposite of the personal touch you want to provide.

It’s worth spending the time to go through your database and segment each client as “employee” or “self-employed”. Next time you scrutinise your data, it will automatically yield a list of business clients who are prime prospects for the services you offer, such as small business loans. This will also enable you personalise and tailor your communications to make your clients feel like you understand them and their needs.

Why you need to segment by industry

All your business customers have different needs and expectations. So the next step is to segment your clients according to their industry. This could involve a breakdown between categories such as hospitality, construction, professional services and education.

The more information you collect, the more refined your searches will be, and the more ways you can view a cross-section of your client base.

This will enable you to understand different groups’ needs and target your marketing materials at precisely the people who will welcome them, at exactly the right time.

Prospa tip: Tagging retail businesses could help you identify clients who need extra finance to help them through the holiday cash flow crunch.

How do I get the most value out of my database?

Your self-employed clients are certain to need a business loan at some point in their entrepreneurial journey. But borrowing money can be daunting, and the first step is to make sure your clients understand the various finance options you can provide.

By segmenting your database into small business owners’ vs PAYG clients, you can easily send out relevant communications to each group. For example, you may send an email about alternative sources of finance, or tips for managing cash flow during Christmas to your small business customers rather than PAYG individuals.

To create the right communications, you need valid materials you can use to explain how small business loans work. When your clients are comfortable with concepts such cash flow lending, they will have more confidence in the idea of taking out a loan with your help.

By better understanding your clients’ needs, you can tailor this communication to meet their requirements.

Prospa makes it easy for busy brokers to produce materials and communications, with a range of non-branded marketing material available for broker partners through the Prospa Portal.


The information in this post is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisors. Although every effort has been made to verify the accuracy of the information as at the date of publication, Prospa, its officers, employees and agents disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information for any reason, including due to the passage of time, or any loss or damage suffered by any person directly or indirectly through relying on this information.

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