AS local businesses start preparing mailing lists for Christmas cards, the Department of Transport and Industry is encouraging Dorset companies to use these databases to develop customer relationships throughout the year.

The DTI's Achieving Best Practice In your Business initiative has launched a new jargon-free publication and online resource called Understanding your customers.

This not only gives advice to businesses on giving customers what they want, but also how to analyse these customers and improve marketing in general.

Roger Riseley, DTI's Achieving best practice champion said: "This time of year sees companies using a central database to send out Christmas cards.

"This is a vital tool that should not be used just once a year. After all, customer relationships are not just for Christmas.

"Understanding your customer is vital to the success of your business and with, for example, the continuing development of technology there are ever more ways to achieve this," Mr Riseley added.

"Given that over 40 per cent of customers tell someone when they receive bad service, providing excellent customer service on an on-going basis is of paramount importance and a fundamental way to help improve productivity and ultimately profitability."

The publication and inline facility takes businesses through the key stages of understanding their customers from collecting, storing and assessing information to effective marketing and enhancing the customer's experience.

It includes sections on market research, effective marketing, customer loyalty and targeting customers.

Understanding Your Customers forms part of a range of award-winning guides from DTI's Achieving Best Practice In your Business.

Copies of the publication are available by telephoning 0870 1502500.