Having a contact database is a no-brainer when it comes to customers and prospects. Everyone knows they need one, whether they actually have one or not. Customers and prospects are some of the most valuable assets that a business has, and staying in touch with them en masse, in groups, or one-on-one is very important to sales success. I'm not sure, however, that a broader contact database that consists of others besides customers and prospects is also considered an asset by most business owners. And it definitely should be.
A "connection database," a repository for all the non-customer/prospect contacts that you have, is a very important component of you
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r marketing and business success. This is your network, the web of people with whom you have some level of relationship, from passing acquaintance to a close and abiding link. Keeping track of your network will do wonders for your business (and your life!).