Over the last few months I have talked about many issues, highlighting how insight from data is the foundation for relationship marketing programmes that are consistently effective. One topic covered has been ‘analysis’, although to date I have only discussed this in a generic fashion, therefore we should explore this in greater depth. Although, before we can do this we need to revisit the actual data again.
Hopefully by now you should understand how critically important your customer data is and how to get it fit-for-purpose. However, almost as important in this discovery process is the third party data you select to assist you, so we need to put some more detail behind it.
Call me cynical (OK and a bit boring!), but working with data for the last 16 years has led me to realise that not every busy marketing exec, manager or director is as knowledgeable about data as they could be. And why should they be? That’s what we get paid for. Moreso, I find that some prospects and clients are really happy to go back to basics when it helps to set their programmes in context; explaining some of their successes and failures, thus helping them to understand why we recommend what we do.
To this end then let’s start at the beginning.
A very good place to start
First, there is no central register or census of all businesses in the UK. Clearly this would be eminently sensible, leading to significant benefits across a whole range of industries and sectors; as our consumer counterparts show working with the luxury of a census they are able to address marketing issues in a more sophisticated manner.
Instead, B2B has essentially three main ‘types’ of data available for marketing, differentiated by source and characteristics. Each source has its own strengths and weaknesses, and marketers need to use these in order to derive intelligence and insights.
The first and probably most familiar source is compiled data, this usually means data derived from compiled directories but covers a plethora of individual databases. The ultimate source is BT’s OSIS file (Operator Service Information System).
OSIS is a database of every telephone connection in the UK both business and consumer. Businesses are differentiated only when the business chooses to pay more for a slightly improved service level agreement, therefore some feel that the additional charge is not worthwhile. (Before Information Arts developed its DNA database around 1.5 million businesses had ‘disappeared’ from the radar of these compiled databases and thus the direct marketing industry.)
Data from a different dimension
Next is the data derived from Companies House which is very different in nature. Legally every PLC and Limited company must register its business and directors’ details, as well as filing financial information at Companies House once a year.
This means that (particularly for large corporates filing full accounts) the information here is data rich financially and provides detailed information on directors and those who own the business. However, only PLC and LTD companies are required to file information and therefore this data has no entries for self employed, sole traders, partnerships or public sector bodies.
The third source of data is derived from subscriptions to magazines and exhibitions. This data does not account for large volumes or comprehensive coverage but can provide a good source of niche data, such as data about middle manager decision-makers.
The ultimate combo
The fact is that for many analytical and prospecting tasks, a proxy business census created by an aggregation of these data types is the ultimate solution as each data type contributes complementary information.
There are a number of significant issues that have made this aggregation difficult however some companies are making good progress.
In the absence of this combination it’s absolutely vital to select the right kind of data to match and profile against, otherwise your results are likely to mislead, potentially sending you off in the wrong direction.
Although basic, the wrong choice of data can have a profound effect on outcomes. It is important that you question your potential supplier hard to ensure that they have a good understanding of your market sector and issues; that their data is appropriate to the task at hand, and that preferably they are able to aggregate a suitable pool of data from a variety of sources as the optimum solution.
