Too many firms concentrate on how to woo new customers and do not pay enough attention to what they can do to gain the loyalty and increased patronage of their current customers. One of the ways to improve this situation is to develop a customer database and use it to better communicate with these customers. WHAT IS DATABASE MARKETING? It is a way of collecting, storing, and using pertinent information about customers. Although customer databases are often associated with computerized management information systems, they may also be used by small firms that are not computerized. Here is an illustration of how a small, non-computerized firm can rather easily set up and utilize a customer data base.