A customer database is a structured collection of information about a company's customers. This data typically includes details such as names, contact information, purchase history, and preferences. Businesses use customer databases to better understand their clients and improve marketing strategies. By analyzing the data in a customer database, companies can identify trends and tailor their services to meet customer needs. This can lead to enhanced customer satisfaction and loyalty. Additionally, customer databases can help businesses manage relationships and streamline communication, making it easier to reach out to customers with relevant offers or updates.